The Federal Government will introduce the Life Insurance Framework (LIF) legislation into Parliament less than a week according to the Minister for Revenue and Financial Services, Kelly O’Dwyer.
Speaking to journalists at the Association of Financial Advisers (AFA) National Conference in Canberra, O’Dwyer said the Government would aim to introduce the legislation on Wednesday (12th October) or Thursday (13th October) of next week.
O’Dwyer also envisaged that the legislation would proceed through Parliament without much difficulty, based on a widespread view that change was required.
“Most people accept that it is important that we align consumer interests and the remuneration structures and there have been three separate reports, all of which have concluded there needs to be significant change in this area,” O’Dwyer said.
“The Government has worked with industry to deliver a package of reforms that work for consumers and ensure viability of industry at the same time,” she added.
“The Government only makes those changes and reforms that are absolutely necessary …LIF reform changes is one of them…”
“We don’t want to add to underinsurance problem and want to ensure that people who want access to life insurance products are able to get that access but we want to make sure there is no conflict in the advice that is being provided at the same time because of how someone is being paid.”
The Minister also stated that while advisers have been subject to a number of changes the Government was acting only where it was required to do so.
“The Government only makes those changes and reforms that are absolutely necessary and there are a number of issues that this Government have been taken out of the too-hard basket. LIF reform changes is one of them and could have been tackled under the FOFA reforms and it wasn’t. We believe it is important that it is tackled and we are making those changes now,” O’Dwyer said.
