{"id":30771,"date":"2015-09-08T12:15:51","date_gmt":"2015-09-08T02:15:51","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=30771"},"modified":"2025-08-28T10:26:42","modified_gmt":"2025-08-28T00:26:42","slug":"government-reaffirms-commitment-to-existing-level-commission-structure","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/09\/08\/government-reaffirms-commitment-to-existing-level-commission-structure\/","title":{"rendered":"Government Reaffirms Commitment to Existing Level Commission Structure"},"content":{"rendered":"

Assistant Treasurer, Josh Frydenberg<\/strong>, has reaffirmed his commitment to supporting the existing level commission options available for financial advisers delivering life insurance advice.<\/p>\n

<\/p>\n

In an interview with riskinfo on issues related to the Life Insurance Framework proposals, Mr Frydenberg emphasised his concern about the importance of the ongoing viability of advice practice small businesses when taking into account the final details attaching to the proposals.<\/p>\n

While he accepted that it was appropriate for market forces to ultimately determine the point at which level commission should be set – that is, a flat commission option for advisers from year one, without any clawback provisions, as an alternative to the proposed 60\/20 hybrid commission option, Mr Frydenberg left riskinfo in no doubt about his desire for that option to continue to be offered:<\/p>\n

…we\u2019re not capping level commissions<\/p><\/blockquote>\n

\u201cIndustry will work out the right level\u2026and I acknowledge that that\u2019s important to the adviser community. Industry will work that out, but we\u2019re not capping level commissions\u2026\u201d<\/p>\n

\"Assistant<\/a>
Assistant Treasurer, Josh Frydenberg: “We’re not capping level commissions…”<\/figcaption><\/figure>\n

The Assistant Treasurer\u2019s affirmation of his position follows the statement from the industry that he included when announcing the details of the new Life Insurance Framework in late June, which said,\u00a0“This proposal is not intended to limit the industry\u2019s current ability to operate on a level commission or fee-for-service basis<\/em>.”<\/p>\n

Mr Frydenberg also confirmed the final details of the Life Insurance Framework proposals, which will form part of the Government’s formal response to David Murray’s Financial System Inquiry recommendations, are likely to be announced later this month.<\/p>\n

…there will have to be an allowance for certain exemptions [to clawbacks]<\/p><\/blockquote>\n

The final details within the proposals to which Mr Frydenberg referred include the circumstances under which clawback provisions would be applied and, importantly, the circumstances under which they would not:\u00a0\u201cThere will be some exemptions, such as where an insured event occurs, for example, when someone dies,” he said, “…and these details are being worked through at the moment.<\/p>\n

“We need a model that is practical and workable and sustainable, and so there will have to be an allowance for certain exemptions [to clawbacks],” added Mr Frydenberg, within the broader context of the proposed changes, which the Assistant Treasurer describes as transformational for the industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

Assistant Treasurer, Josh Frydenberg, has reaffirmed his commitment to supporting the existing level commission options available for financial advisers delivering life insurance advice.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":{"0":"post-30771","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-remuneration","8":"headers-new"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30771","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=30771"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/30771\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=30771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=30771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=30771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}