{"id":33187,"date":"2016-05-04T01:46:23","date_gmt":"2016-05-03T14:46:23","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=33187"},"modified":"2016-05-04T08:32:55","modified_gmt":"2016-05-03T21:32:55","slug":"lif-legislation-hangs-in-the-balance","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/05\/04\/lif-legislation-hangs-in-the-balance\/","title":{"rendered":"Time Running out for LIF Legislation"},"content":{"rendered":"

The current Life Insurance Framework (LIF) legislation is unlikely to become law before this year\u2019s Federal election but the agenda behind LIF will see some form of commission limiting legislation pass through Parliament.<\/p>\n

\"FPA<\/a>
FPA CEO Dante De Gori<\/figcaption><\/figure>\n

The LIF legislation lapsed on 17 April when the Senate was prorogued after the proposed legislation reached the stage of being moved for a second reading, following\u00a0a short delay in which a bipartisan Senate Committee recommended the legislation be passed.<\/a><\/p>\n

According to Parliamentary procedures, the LIF legislation would recommence its movement through the Senate only after a request from the House of Representatives for the Senate to make it an order of the day at its next sitting.<\/p>\n

However, while the Senate was recalled on 18 April it has only sat for a handful of days, and in that time has not been asked by the House of Representatives to make further progress with the legislation.<\/p>\n

“An election does not mean LIF has gone, it will just be delayed.”<\/h6>\n

Published agendas for the coming week for both Houses do not list any action on the legislation with the Parliamentary webpage for the legislation stating it was \u201cNot Proceeding\u201d.<\/p>\n

Financial Planning Association, Chief Executive, Dante De Gori<\/strong> said it was unlikely now that the LIF legislation would get through the Senate even though 13 sitting days remain in May and June, as riskinfo went\u00a0to press.<\/p>\n

Commenting on general speculation, De Gori stated it would appear the Prime Minister would wait until after the 3 May Budget and 5 May Budget Response from the Opposition before calling an election.<\/p>\n

He stated this may take place over the coming weekend, with May 11 being the latest day to call an election for a June 2 polling date.<\/p>\n

This latter date would reduce the sitting days for the Senate to a maximum of four before the current parliament is dissolved, at which time the legislation would need to be reintroduced into the next parliament, and passed by both houses again, before becoming law.<\/p>\n

De Gori said while it was unlikely the LIF legislation would pass the Senate, financial advisers should not believe this would be the last of the LIF legislation or the agenda which created it.<\/p>\n

\u201cAn election does not mean LIF has gone, it will just be delayed. If the Government is returned the legislation can be reintroduced and the Opposition has indicated it will support the bill as it stands,\u201d De Gori said.<\/p>\n

\u201cIf Labor wins, the legislation is likely to be scrapped but the agenda behind it will not.”<\/h6>\n

\u201cIf Labor wins, the legislation is likely to be scrapped but the agenda behind it will not. The likelihood of 20% commissions or even less is greater, given that an agenda to ban commissions has been part of Labor\u2019s policies since the introduction of the Future of Financial Advice reforms.\u201d<\/p>\n

De Gori\u2019s comments echo those of Shadow Minister for Financial Services and Superannuation, Jim Chalmers who stated recently that while the Opposition supported the LIF legislation it preferred a longer clawback period<\/a> and would re-examine commissions at a later date.<\/p>\n

\u201cThe 1 July start date is now unlikely but the LIF framework will endure and it will not return to the status quo,\u201d De Gori said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The current Life Insurance Framework (LIF) legislation is unlikely to become law before this year\u2019s Federal election but the agenda behind LIF will see some form of commission limiting legislation pass through Parliament.<\/p>\n","protected":false},"author":3,"featured_media":33199,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[4247],"class_list":["post-33187","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-remuneration","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/33187","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=33187"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/33187\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/33199"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=33187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=33187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=33187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}