{"id":32890,"date":"2016-04-05T21:58:29","date_gmt":"2016-04-05T10:58:29","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=32890"},"modified":"2026-03-26T12:30:38","modified_gmt":"2026-03-26T01:30:38","slug":"afa-reaffirms-lif-commission-position","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/04\/05\/afa-reaffirms-lif-commission-position\/","title":{"rendered":"AFA Reaffirms LIF Commission Position"},"content":{"rendered":"

The Association of Financial Advisers (AFA) has reaffirmed that its approach to commissions under the Life Insurance Framework (LIF) was the best outcome for advisers, citing recent discussions with senior Federal Government and Opposition representatives.<\/p>\n

Writing to members late last week, AFA President Deborah Kent<\/strong> stated the Association had continued to meet with the Assistant Treasurer, Kelly O\u2019Dwyer<\/strong> and Shadow Minister for Financial Services and Superannuation, Dr Jim Chalmers<\/strong>\u00a0regarding the progression of the LIF and professional standards legislation.<\/p>\n

\"AFA<\/a>
AFA President, Deborah Kent<\/figcaption><\/figure>\n

Kent said that a joint position within the advice and life insurance sectors, which was reached with the Financial Planning Association and the Financial Services Council, was necessary to avoid greater reductions in commissions under LIF and this had been borne out in the meetings.<\/p>\n

\u201cOur recent meetings confirmed that if the industry did not reach an agreement on transitionary arrangements for commissions, the alternative would have been likely in the form of a level commission structure as recommended in the FSI report,\u201d Kent stated, referring to the Financial System Inquiry which called for a ban on upfront commissions<\/a> in favour of 20% flat commissions structure.<\/p>\n

…we are calling for life insurers to record and provide ASIC with segmented, granular data on policies over the next three years…<\/p><\/blockquote>\n

While the LIF legislation has passed the House of Representative and has been recommended by a bipartisan committee<\/a> to pass through the Senate, Kent said its progress was dependent on events within Parliament including the calling of an early election.<\/p>\n

However, the AFA was continuing discussions with both sides of Government and the Australian Securities and Investments Commission (ASIC) about the 2018 review of life insurance advice with Kent stating the AFA had secured support from O\u2019Dwyer \u201c…for a fair and representative review based on granular data\u201d.<\/p>\n

The AFA said it would also meet with ASIC to discuss the types of policy information it would seek from insurers in the review and would request that insurers provide detailed data for the review.<\/p>\n

\u201cTo understand reasons for policy cancellations we are calling for life insurers to record and provide ASIC with segmented, granular data on policies over the next three years,\u201d Kent said.<\/p>\n

\u201cOngoing engagement is critical and we will continue to advocate strongly for members to ensure that policy replacements that are in the best interests of clients are not captured as a policy lapse.\u201d<\/p>\n

\"AFA<\/a>
AFA President Deborah Kent (L) and AFA Chief Executive\u00a0Brad Fox (R) with Assistant Treasurer Kelly O’Dwyer<\/figcaption><\/figure>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Association of Financial Advisers (AFA) has reaffirmed that its approach to commissions under the Life Insurance Framework (LIF) was the best outcome for advisers, citing recent discussions with senior Federal Government and Opposition representatives.<\/p>\n","protected":false},"author":3,"featured_media":32937,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,270],"tags":[4247],"class_list":["post-32890","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation","category-remuneration","tag-feature","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/32890","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=32890"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/32890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/32937"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=32890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=32890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=32890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}