LIF Loophole Poll – No Clear Verdict

There has been no clear outcome in our poll on whether advisers may consider exploring a potential clawback loophole in the LIF reform regulations.

As we go to print, the ‘no’ vote has the upper hand at 46% on the question of whether advisers would engage in client rebates to avoid or minimise future commission clawbacks. However, the ‘yes’ vote is not far behind, at 34%, while the undecided vote is a significant 20%.

The context of this poll question relates specifically to remuneration issues generated by the Life Insurance Framework reforms, but it’s possible this poll outcome simply reflects a divide between those advisers who think it’s ok in general to rebate commissions and those who don’t.

Has Imac’s Ian McDermott got it right? Do you think client rebates will be used to overcome clawbacks under LIF (see: Inconsistent LIF Regulations Create Loopholes)? If you rebate now, will you continue to do so? If you’ve never rebated commissions before, will you think about it when the LIF reforms take effect? Or is this poll question merely a distraction that will have little-to-no impact on most advisers who are addressing the broader issue of overall remuneration structures under LIF?

Our poll remains open for another week and, as always, we’re keen to know what you think…