The Association of Financial Advisers (AFA) has continued its attack on the Federal Government’s financial reforms program, with research saying people want to decide how they pay for advice.

Using research house Coredata, the AFA says consumers do value advice on life insurance matters and have realistic levels of cover; but they want a choice on remuneration options.

AFA CEO Richard Klipin says the research confirms the Government’s Future of Financial Advice (FOFA) reforms are acting against consumers’ wishes.

“What we discovered is that people who receive life insurance-related financial advice are happy for their adviser to be remunerated via commissions and prefer to have choices,” he said.

“The research findings confirm that some of the FOFA reforms run counter to its primary objective – to create better outcomes for consumers.”

Mr Klipin has called for life insurance to be part of the national agenda on risk protection, saying it plays an important role in protecting individuals.

“The fires, floods, earthquakes, tsunamis and nuclear leaks of the past 12 months are bringing into stark focus the issues of risk for the Australian community,” he said.

“Risk management must be part of the national agenda for families, businesses, companies, governments and regions.

“Our research indicates that if bans on commissions go ahead, fewer people may get financial advice, and therefore fewer may have appropriate levels of life insurance.”

The argument for reform was again emphasised by Assistant Treasurer Bill Shorten in a speech to a Financial Services Council event in Canberra last week.

“When it comes to financial advice we think the FOFA package gets the balance right and is absolutely in the interests of consumers – giving them a better deal and building greater trust,” he said.

“So we also think it’s in the longer term interests of the financial services industry.”