The Financial Services Council has applauded the Government’s 2021 Budget commitment to implement a product modernisation scheme designed to tackle the challenging issue of managing legacy products across the financial services sector.
Congratulating the Government for delivering a Budget the FSC says “…unshackles the economy to drive growth and investment in the financial services sector,” CEO Sally Loane said reducing costs in financial services through efficiency measures will be positive for consumers.
She added that the FSC is “…looking forward to working closely with the Government to ensure that the product modernisation scheme for life insurance and investment products removes the tax and social security barriers which have prevented millions of Australians from moving from older products to more modern ones.”
Loane emphasised that with approximately 1.6 million Australians currently holding outdated life insurance products, the ability for these consumers to move into a modern product without any tax penalties will be a great outcome.
Riskinfo will report more details and other industry reaction in the coming days.