The final details of the Life Insurance Framework provisions appear to remain unresolved, judging by early industry response to news of the delayed implementation of the proposed reforms.
Following hot on the heels of its formal reply this week to David Murray’s Financial System Inquiry (FSI) recommendations, the Government’s announcement that it supports a delay to the implementation of the Life Insurance Framework (LIF) proposals has drawn a swift response from a number of key industry stakeholders.
AFA
Of particular note has been a brief statement released by AFA chief executive, Brad Fox, in which he suggests that some details of the LIF reforms are still to be finalised.
Mr Fox has commented that “… delaying the implementation date for the LIF reforms appears appropriate given the detail of the framework is yet to be settled.” In his statement, Fox adds “All industry participants will need time to adjust and implement the final outcomes once they become clear.”
Zurich
Zurich Financial Services has been quick off the mark in releasing a statement to advisers, in which Phil Kewin, Zurich’s General Manager, Retail Life & Investments, acknowledges many advisers will have mixed feelings about the delay announcement:
“On the one hand there is now an extended period of uncertainty around the finer details of the framework and its implementation,” said Kewin. “On the other hand,”, he continued, “…there is more time for consultation to determine what those details will be, and more time to prepare for some of the most significant changes we have seen in more than a decade.”
FSC
The Financial Services Council indicated that it was too early to make a formal comment on the delay and it was still working through the FSI announcements.
Neither the Financial Planning Association nor the office of the Assistant Treasurer responded by deadline to our request for comment on the new LIF timeframe.
These initial responses to the delayed implementation of the LIF reform proposals follow the earlier announcement by the Government, contained within its reply to the FSI Final Report, that it would defer to the self-regulated LIF reform model, rather than opt for the FSI’s level commission recommendation.
