STEPHEN CRANSTON: Financial planning practices will need to become one-stop shops
It is not clear that the decline of the life insurance industry as the main vehicle for harnessing SA’s savings was a good thing
Life was simple for investors 30 or 40 years ago. Investment products were sold either by tied agents or independent brokers in insurance wrappers. There were upfront commissions which, though regulated, were generous enough for top agents to become well off. It was enough for life insurance to attract first-rate salespeople.
It was easy enough to criticise as for many years commissions were not even disclosed to clients. When it came to endowment policies, there was something called the “benefits illustration agreement”, which showed the growth in the investment assuming two potential average growth rates as high as 10%-15%, quite a meaningless projection. ..
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