After the Hayne Royal Commission made its recommendations in 2019, the financial adviser industry has been greatly impacted. Many businesses have faced challenges to their sustainability. Complex compliance requirements and excessive bureaucracy have raised the fundamental costs of operating. Moreover, there has been a notable rise in overall financial planning regulations in recent years.

Another significant factor contributing to this issue is the stress surrounding educational requirements. All financial advisers were required to pass the Financial Adviser Examination (FASEA exams) by December 31, 2021. However, the Financial Review reported that two out of five advisers had yet to take the exam, and approximately 2000 advisers had no intention of doing so.

According to a report by the Financial Services Council published in April 2021, consumers are now facing an average advice fee of approximately $3,240. This represents an unsustainable increase of 28 percent in just two years.

The continuous rise in compliance costs due to increased regulations has created significant financial challenges for the industry's viability. To cope with these costs and stay competitive, the industry has transferred them to the consumers. As a result of these pressures, the average fees charged by advisers have increased

Another contributing factor is the expected outcome of advisers removing unprofitable clients from their portfolios in order to maintain sustainable businesses. This has subsequently led to a greater demand for reliable advice, further driving up prices.

It can be quite overwhelming when considering all the different options available when you look for the right insurance policy to keep your family secure. Brokers specialising in life insurance can provide a valuable service to customers. These include:

Providing general information about life insurance policies and services Assist you in comparing different policies and insurers Assisting in setting up a policy based on your requirements Provide ongoing assistance with your policy and cover needs as your requirements change Assistance when you need to make a claim on your policy.

An insurance broker acts as an intermediary, selling or bargaining insurance policies on behalf of clients and receiving compensation for their services, usually in the form of a "brokerage fee."

Insurance brokers do not have standardised fees. However, typically, insurance brokers receive a commission calculated based on the insurance premium you pay. Additionally, they may charge a separate fee for their services, which can vary depending on the type of insurance and the level of effort required to ensure you are adequately protected.