![\"AFA](\"https:\/\/riskinfo.com.au\/news\/files\/2015\/06\/Brad-Fox-2.jpg\")
<\/a>The Association has said it is working to improve specific areas of the LIF proposals, where CEO Brad Fox<\/strong> has singled out the clawback provisions for further attention. He said “… it is clear that advisers share the AFA\u2019s concern over the detail, particularly around the three-year responsibility period for new business.” Mr Fox characterised the current provision as a ‘blunt instrument’, but said it has strong government support as a measure to deal with inappropriate product replacement.<\/p>\n \u201cThree-year clawback for life insurance business which the adviser replaces themselves appears to be acceptable to most advisers, but shifting the burden of responsibility to the adviser where policies lapse outside of their control is unfair,\u201d he said. \u201cOver the coming weeks we will continue to apply pressure for clawback to apply only with replacement product advice and not situations that sit outside the advisers\u2019 control, like a client-directed lapse because of unaffordability.\u201d<\/p>\n Mr Fox continued, \u201cWe are concerned that the three-year clawback not be used to shift an unreasonable burden from the institutions onto small business financial advisers that do the right thing,\u201d Mr Fox said, while also noting “… the initial framework lacked detail and that is what we are seeking to influence now.”<\/p>\n In what the Association sees as another area of concern, it noted the LIF will make it harder for a new adviser to start from scratch, particularly in their own business, if they focus on risk insurance only. It says this is a poor outcome at a time when the demand for advice is increasing.<\/p>\n In noting the level of adverse adviser response to the LIF proposals, the AFA announced lasst week itr would be adding an extra half-hour to its July National Practitioner Ropadshow to give all advisers who wish to do so, the opportunity to to discuss their concerns direct with the CEO and other AFA key figures (see: Life Insurance Framework – Sorting Fact From Fiction<\/a>).<\/p>\n As noted in last week’s article, riskinfo understands the AFA is looking to conduct another roadshow in the coming months, in addition to the open forum at its National Practitioner Roadshow, that is dedicated to the issues surrounding the Life Insurance Framework. We will provide further updates on this initiative.<\/p>\n","protected":false},"excerpt":{"rendered":" The Association of Financial Advisers (AFA) has issued a statement this week, further clarifying its position on the proposed clawback provisions contained in the new Life Insurance Framework (LIF).<\/p>\n","protected":false},"author":3,"featured_media":30372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,241,270],"tags":[4247],"class_list":{"0":"post-30321","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-conferences-and-events","9":"category-remuneration","10":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=30321"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/30372"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=30321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=30321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=30321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}… the initial framework lacked detail and that is what we are seeking to influence now<\/h6>\n