There was lots of commenting action around yesterday’s story on the former financial adviser who was convicted of ‘tombstoning’ after using fake names to submit applications for life insurance.
Many of you drew on your own experience in the industry to address the issue.
“As a State Manager of Life offices in the 80's 90's I saw a lot of this and it is unique to the Life insurance industry, it cannot work in any other financial services product”, said Observer102
, adding that banning commissions would help this problem.
said they saw evidence of fake loans as a bank officer in the 80s and 90s, which were being written to fund interest on the other fake loans, but did not agree a commission ban was the answer: “Unless this industry can somehow waive the necessity of an adviser doing a 50 page SOA and the other requirements just to set up a simple life policy, then commissions are probably the only hope consumers have of getting appropriate advice.”
A couple of you said regardless of the debate about commissions, there will always be some people in the industry that break the law.
said: “Despite my view on commissions, changing the system won't eradicate crooks, it will just make them adapt. It is similar to doping in sport - those who try to get around the system will always find a way.”
David from Perth
also agreed that commissions had nothing to do with being a crook.
Read the article and more comments here.