{"id":34372,"date":"2016-08-30T23:15:52","date_gmt":"2016-08-30T13:15:52","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=34372"},"modified":"2016-08-31T07:07:50","modified_gmt":"2016-08-30T21:07:50","slug":"odwyer-confirms-lif-will-cover-direct-channels","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/08\/30\/odwyer-confirms-lif-will-cover-direct-channels\/","title":{"rendered":"O\u2019Dwyer Confirms LIF Will Cover Direct Channels"},"content":{"rendered":"<p>The Life Insurance Framework legislation will be reintroduced into Parliament in the next three months with the Minister for Revenue and Financial Services, <strong>Kelly O\u2019Dwyer<\/strong> confirming it will cover direct insurance.<!--more--><\/p>\n<figure id=\"attachment_31548\" aria-describedby=\"caption-attachment-31548\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2015\/11\/Kelly-ODwyer.jpg\" rel=\"attachment wp-att-31548\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31548\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2015\/11\/Kelly-ODwyer.jpg\" alt=\"Minister for Revenue and Financial Services, Kelly O'Dwyer\" width=\"150\" height=\"180\" \/><\/a><figcaption id=\"caption-attachment-31548\" class=\"wp-caption-text\">Minister for Revenue and Financial Services, Kelly O&#8217;Dwyer<\/figcaption><\/figure>\n<p>Responding to questions put to her office by riskinfo, O\u2019Dwyer stated \u201cThe Turnbull Government will reintroduce the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 in the Spring sittings\u201d, which are due to run from 30 August to 1 December and during which both houses will be sitting.&#8221;<\/p>\n<p>If the Government is targeting a likely start date of 1 July 2017, this suggests it would introduce the legislation earlier in the Spring sitting period to allow the legislation time to progress through both Houses of Parliament and become law before the end of the year.<\/p>\n<p>Importantly, Minister O\u2019Dwyer confirmed that direct insurance would be covered by the legislation, which would still impact up-front commissions.<\/p>\n<h6>The legislation applies to personal and general advice, which includes direct sales channels&#8230;<\/h6>\n<p>\u201cUnder the reforms upfront advisers\u2019 commissions will remain but will be scaled down while level commissions and adviser fees remain uncapped,\u201d O\u2019Dwyer stated.<\/p>\n<p>\u201cThe legislation applies to personal and general advice, which includes direct sales channels,\u201d she added.<\/p>\n<p>The confirmation ends industry speculation that a carve-out had been gained by life insurers through the Financial Services Council and reaffirms comments made by the Minister in November 2015 when she <a href=\"http:\/\/kmo.ministers.treasury.gov.au\/media-release\/024-2015\/\" target=\"_blank\">announced the release of the second draft of the LIF legislation<\/a>.<\/p>\n<p>Prior to the most recent Federal Election the LIF legislation had passed through the House of Representatives and had proceeded through a number of readings in the Senate before being passed to a committee for review.<\/p>\n<p>The committee recommended the Senate <a href=\"https:\/\/riskinfo.com.au\/news\/2016\/03\/16\/senate-committee-confirms-lif-legislation\/\" target=\"_blank\">pass the legislation as it stood<\/a> stating the bill contained provisions to ensure that consumers could access unbiased and appropriate advice when purchasing life insurance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Life Insurance Framework legislation will be reintroduced into Parliament in the next three months with the Minister for Revenue and Financial Services, Kelly O\u2019Dwyer confirming it will cover direct insurance.<\/p>\n","protected":false},"author":3,"featured_media":34401,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4247],"class_list":{"0":"post-34372","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34372","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=34372"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/34401"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=34372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=34372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=34372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}