{"id":34817,"date":"2016-10-03T05:00:06","date_gmt":"2016-10-02T18:00:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=34817"},"modified":"2016-10-03T07:36:47","modified_gmt":"2016-10-02T20:36:47","slug":"lif-reforms-delayed","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/10\/03\/lif-reforms-delayed\/","title":{"rendered":"LIF Reforms Delayed"},"content":{"rendered":"

The transition to the proposed Life Insurance Framework reforms will be delayed until 1 January 2018.<\/p>\n

<\/p>\n

\"Minister<\/a>
Minister for Revenue and Financial Services, Kelly O’Dwyer<\/figcaption><\/figure>\n

As reported in the weekend press (AFR Weekend), Minister for Revenue and Financial Services, Kelly O’Dwyer<\/strong>, has stated the Life Insurance Framework legislation she will introduce into Parliament this month will transition all advisers to the new remuneration structure from 1 January 2018.<\/p>\n

…the legislation would allow no carve-outs for direct or general advice<\/h6>\n

Minister O’Dwyer was also reported as having reiterated earlier statements that the legislation would allow no carve-outs for direct or general advice (see: O’Dwyer Confirms LIF Will Cover Direct Channels<\/a>).<\/p>\n

She is reported as saying her government was worried that some companies would try to dodge the proposed remuneration caps outlined in the LIF reform proposals, citing as an example the potential use of mass customer databases to ‘pitch’ policies while claiming not to be providing direct advice.<\/p>\n

The Minister said “These reforms cover all life insurance sales involving advice, regardless of whether it’s personal advice or general advice,”<\/p>\n

In confirming the delay to the LIF timeline and also the lack of carve-outs for direct or general advice, AFA CEO, Brad Fox<\/strong>, told riskinfo his association has been continuing to lobby for greater transition time, and to ensure there are absolutely no carve-outs: “The confirmation from the Minister on both counts will give our members more time to prepare their businesses, and insurers more time to work out what they will need to do to support and be relevant to financial advisers that are calling for efficiencies,” he said.<\/p>\n

Another change to the draft legislation introduced into Parliament prior to the Federal Election is that all employees on contracts and Enterprise Bargaining Agreements (EBAs) will be subject to the same rules as self employed advisers from the commencement of the transition. Fox said the initial legislation was drafted to allow existing EBAs to run their course. “That is now not the case…all advisers regardless of channel start at the same time. This was exceptionally important to the AFA,” he said.<\/p>\n

Minister O’Dwyer is scheduled to deliver a video address at the commencement of this week’s 2016 AFA National Adviser Conference<\/a> in Canberra, in which she\u00a0 is expected to confirm these changes to the updated LIF reform package to be introduced into Parliament later this month. She will also be attending the Conference on its final day.<\/p>\n

Note to Advisers:<\/em><\/strong><\/p>\n

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":"

The transition to the proposed Life Insurance Framework reforms will be delayed until 1 January 2018.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259,8,270],"tags":[],"class_list":{"0":"post-34817","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-breaking","7":"category-compliance-regulation","8":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34817","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=34817"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/34817\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=34817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=34817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=34817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}