{"id":34357,"date":"2016-08-30T14:52:14","date_gmt":"2016-08-30T04:52:14","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=34357"},"modified":"2016-08-31T07:09:12","modified_gmt":"2016-08-30T21:09:12","slug":"commercial-viability-of-the-lif-remuneration-reforms","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/08\/30\/commercial-viability-of-the-lif-remuneration-reforms\/","title":{"rendered":"Commercial Viability of the LIF Remuneration Reforms?"},"content":{"rendered":"<div id=\"polls-167\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Could your advice business successfully operate under the remuneration proposals outlined in the New Life Insurance Framework?<\/strong><\/div><div id=\"polls-167-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Yes - but I don't support the remuneration proposals <small>(41%)<\/small><div class=\"pollbar\" style=\"width: 41%\" title=\"Yes - but I don't support the remuneration proposals (41% | 131 Votes)\"><\/div><\/li>\n\t\t<li>No <small>(35%)<\/small><div class=\"pollbar\" style=\"width: 35%\" title=\"No (35% | 112 Votes)\"><\/div><\/li>\n\t\t<li>Yes - and I support the remuneration proposals <small>(12%)<\/small><div class=\"pollbar\" style=\"width: 12%\" title=\"Yes - and I support the remuneration proposals (12% | 39 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(12%)<\/small><div class=\"pollbar\" style=\"width: 12%\" title=\"Not sure (12% | 37 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_167_nonce\" name=\"wp-polls-nonce\" value=\"77504d885c\" \/>\n<\/div>\n\n<p>Our latest poll seeks to focus attention on the commercial aspects and implications of the proposed Life Insurance Framework reforms.<\/p>\n<p><!--more-->With the return of Parliament this week, there exists a strong likelihood that the Life Insurance Framework reform legislation will shortly be re-introduced. Should this occur, it is also likely to be supported by the Labor Party, with no further amendments.<\/p>\n<h6>&#8230;there exists a reasonable prospect that these controversial reform proposals may soon become legislated<\/h6>\n<p>In spite of the ongoing industry debate that focuses on the potentially flawed interpretation of the outcomes revealed in <a href=\"https:\/\/riskinfo.com.au\/news\/2014\/10\/09\/asic-life-insurance-advice-review-unacceptable-level-of-failure\/\" target=\"_blank\">ASIC&#8217;s Report 413<\/a>, which the Government has consistently relied on to justify its life insurance remuneration reform proposals, and despite arguments that the Government and the Financial Services Council has failed to articulate exactly how these reforms will benefit the consumer, there exists a reasonable prospect that these controversial reform proposals may soon become legislated.<\/p>\n<p>It&#8217;s been fourteen months since then Assistant Treasurer, <strong>Josh Frydenberg<\/strong>, announced the 14-point structure of the new Life Insurance Framework (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2015\/06\/25\/new-life-insurance-framework-announced\/\" target=\"_blank\">New Life Insurance Framework Announced<\/a>). What contingencies have you made in your business during that time?<\/p>\n<p>Is your advice practice one of those which has indicated it will be able to withstand the shorter-term reduction in initial cash flows (especially if its is a business based around upfront commission structures), before the doubled ongoing hybrid-model commissions begin to make an impact on its bottom line? Or is your practice one of the many which have told us they will not be able to survive the cash flow transition from 120\/10 to 60\/20?<\/p>\n<p>We asked you this same question inside one week of the new Life Insurance Framework reform proposals being announced in late June 2015, and are keen to determine whether there has been any significant change in your assessment of the commercial realities implied by the proposed remuneration changes.<\/p>\n<p>This is not a poll which canvasses your opinion of the merits of the proposed reforms. We will continue to report latest developments on lobbying for change. Rather, we&#8217;re interested in your own assessment, 14 months on, about whether your business will remain commercially viable in a post LIF environment.<\/p>\n<p>As always, we value your measured thoughts on this critical issue&#8230;<\/p>\n<p><span style=\"text-decoration: underline\"><em><strong>Note to Advisers:<\/strong><\/em><\/span><\/p>\n<p><strong><em>We welcome your comments and in the interest of fairness, request that you properly identify yourself either in your post ID or at the end of each comment<\/em>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll seeks to focus attention on the commercial aspects and implications of the proposed Life Insurance Framework reforms.<\/p>\n","protected":false},"author":3,"featured_media":34402,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":["post-34357","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-polls","category-remuneration","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34357","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=34357"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/34402"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=34357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=34357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=34357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}