Latest Poll – LIF Changes?

3
What is the key change you would make to the proposed Life Insurance Framework reforms?
  • Accept the reforms, but reduce clawbacks to one year (41%)
  • Reject the reforms and retain the status quo, ie retain upfront commissions (28%)
  • Accept the reforms, but allow an 80/20 hybrid model (18%)
  • Accept the reforms, but guarantee access to 30% level commission option, with no clawbacks (7%)
  • Accept the reforms as currently proposed (4%)
  • Other key changes (2%)
  • Not sure (0%)

The appointment of a new minister responsible for the financial services sector has heightened speculation about possible changes to the new Life Insurance Framework proposals.

While it’s yet to be determined whether the appointment of Kelly O’Dwyer as Assistant Treasurer will necessarily lead to any changes to the current LIF proposals, we’re keen to know your views about what changes you and your advice business would most prefer to see happen.

We accept that many, if not most risk-focused advisers in particular, would like to see a number of the changes we have listed. But during the course of this debate, advisers have submitted different views about what is most important to them, particularly the three-year clawback provisions and the termination of upfront commissions.

So, if you could make an argument to the new Assistant Treasurer to make one change to the proposed LIF reforms, what would be the issue and what would be your argument?

We welcome your feedback at a critical moment in this Life Insurance Framework debate…



RELATED ARTICLESMORE FROM AUTHOR

3 COMMENTS

  1. Personally I would have liked the chance to vote for 80/20 Hybrid, retaining levels at 30% and keeping the clawback period to 1 year.
    Most advisers would accept a switch to hybrid from upfront (even though this will discourage new entrants) but its the 3 year clawback and reduction of hybrid commission to 60% under the current proposals that will kill the risk adviser market.
    Already the consensus on this poll is that the current reform proposals are unacceptable to advisers and I hope Riskinfo will be passing on these results to Kelly O’Dwyer.
    The FSC are in panic lobbying mode desperately hoping that their profit increasing proposals will go through and the AFA / FPA are still not acting strongly enough for their members so its vital that the new minister is made aware of the issues at stake and that advisers are not in agreement with the FSC.

    • Reality Check. I would vote the same – 80/20 Hybrid and 1 year Clawback. I also hope the results of these polls are being passed on to those who need to read them!

  2. My request to the new assistant Treasurer, would be that they ask for clarity and proof, and not to accept vague assumptions, smokescreens and mirrors and a refusal to have open dialogue, which has been the hallmark of the FSC around many of the issues.

    Having a responsibility to the largest employer group in Australia, which is small Business, is a fundamental requirement to the future of this country and one this new pool of ministers, must take seriously.

    The first step in that direction, would be to look closely at the way this whole debacle has been handled and for the new assistant treasurer to demand honesty and transparency from all parties.

Comments are closed.