Financial advisers have been given a final opportunity to comment on the Life Insurance Framework (LIF) after the underlying legislation was referred to a Senate committee late last week.
The Senate made the decision to immediately refer the provisions of the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 to the Senate Economics Legislation Committee (SEC) on 25 February, with a reporting date of 15 March.
In making the decision to refer the legislation to a committee the Senate stated its reason was “…to consider the implication of the Bill on the life insurance industry and to allow relevant stakeholders to voice their opinions on the Bill.”
As a result of this referral, the SEC will take submissions from any interested parties until 7 March.
Interestingly, Hansard listed the Association of Financial Advisers, the Financial Planning Association, the Financial Services Council, Department of the Treasury, John Trowbridge and life insurers as groups from which it may receive possible submissions or evidence.
one reason for the referral was “… to allow for additional consideration of the legislation”
The referral of bills to a Senate committee is common practice, but a second appendix to the proposal to refer the bill also stated that one reason for the referral was “… to allow for additional consideration of the legislation”.
Responding to the referral of the LIF legislation to the SEC, the Life Insurance Customer Group (LICG) has reiterated its call for further consideration of the LIF legislation, and is contacting advisers asking them to request their professional associations to make a submission before 7 March.
“This presents an urgent opportunity for our industry associations, the AFA and FPA, to make a submission to the SEC which accurately and fairly represents its members concerns,” the LICG stated.
“Since launching the LICG petition we have received over 2000 supporters – of these over 50% have indicated they are either members of the AFA or FPA – an extraordinary high number of members voicing their discontent with the proposed reforms.”
“The formation of the SEC provides a real opportunity for proposed flawed LIF legislation to be reviewed.”
Submissions can be made to the SEC by email.
Get your submission in because you can bet the mob of Industry Fund lobbyists and ASIC will be doing so, with the express aim of making the final legislation even more onerous.
Haven’t these groups had their say over and over again They have deserted their members at the time they were needed most why should they change now ?
Corporate greed from the mercanary banks and insurers is the problem here everyone can see it there is absolutley no benefit to the consumer in all this and I trust the committee has the brains and fortitude to reject this outlandish legislation for what it is Get your submissions in EVERYONE don’t leave it to others every voice is so important
Once again I see the incredibly short time allowed to submitt our submissions If ever there was a last chance of sensible change that will actually assist the consumer and the advisers and not the banks bottom line
this is it If you sit back don’t winge when the change happens
I’ve already contacted the AFA ( I’m a member ) very strongly urging them to make a submission. Today the LICG emailed me a pack to help me make a submission to my local member. I urge every adviser to go to http://www.licg.com.au and voice your opinion. We only have a few days, and every little bit helps.
The bureaucrats, ASIC, the FSC and other self interested parties have conned the Asst Treasurer into running a duplicitous campaign to destroy small business associated with the Life risk industry.
They don’t care about the thousands of small businesses that will be destroyed or what happens to the average consumer with these LIF changes.
Like many other posts, 99.9% of clients won’t pay for risk advice and in the 40 odd years I’ve been in this business, not one client has ever complained about the level of commission received by me. In fact in the client interest is the starting point to which most start this process and the premium never enters the equation until the client has to write a cheque, because the benefits and the basis of the advice have always outweighed the cost.
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