{"id":43485,"date":"2019-02-04T16:13:27","date_gmt":"2019-02-04T06:13:27","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=43485"},"modified":"2019-02-04T16:29:15","modified_gmt":"2019-02-04T06:29:15","slug":"royal-commission-casts-doubt-on-future-of-risk-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/02\/04\/royal-commission-casts-doubt-on-future-of-risk-commissions\/","title":{"rendered":"Royal Commission Casts Doubt on Future of Risk Commissions"},"content":{"rendered":"<p>The Banking Royal Commission has cast a giant shadow over the long-term future of life insurance commissions.<\/p>\n<p><!--more--><\/p>\n<p>Included in the 76 recommendations made in the <a href=\"https:\/\/riskinfo.com.au\/news\/files\/2019\/02\/190204-Royal-Commission-Final-Report.pdf\" target=\"_blank\" rel=\"noopener\">final report<\/a> into Misconduct in the Banking, Superannuation and Financial Services Industry submitted by <strong>Commissioner Hayne<\/strong>, the Commissioner has recommended that, in respect to the current life insurance remuneration reforms being implemented by ASIC as part of the Life Insurance Framework reforms:<\/p>\n<p><em>&#8220;ASIC should consider further reducing the cap on commissions in respect of life risk insurance products.&#8221;<\/em><\/p>\n<p>The Commissioner continued:<\/p>\n<p><em>&#8220;Unless there is a clear justification for retaining those commissions, the cap should ultimately be reduced to zero.&#8221;<\/em><\/p>\n<p>In a press conference following the public release of the Royal Commission recommendations, Treasurer, Josh Frydenberg, has indicated the Government will be taking action on all 76 of Commissioner Hayne&#8217;s recommendations, including ending all grandfathered commissions by 1 January 2021.<\/p>\n<p>The Treasurer also indicated that &#8216;hawking&#8217; for the sale of both superannuation and insurance products will be prohibited in future.<\/p>\n<p>Riskinfo will provide more detailed updates and report industry reaction to the 76 recommendations in the three-volume, 496-page final report.<\/p>\n<p>Recommendation 2.5 reads in full:<\/p>\n<p><strong>Recommendation 2.5 \u2013 Life risk insurance commissions<\/strong><\/p>\n<p><em>When ASIC conducts its review of conflicted remuneration relating to life risk insurance products and the operation of the ASIC Corporations (Life Insurance Commissions) Instrument 2017\/510, ASIC should consider further reducing the cap on commissions in respect of life risk insurance products. Unless there is a clear justification for retaining those commissions, the cap should ultimately be reduced to zero.<\/em><\/p>\n<p><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2019\/02\/190204-Royal-Commission-Final-Report.pdf\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to access the Final Report into Misconduct in the Banking, Superannuation and Financial Services Industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Banking Royal Commission has cast a giant shadow over the long-term future of life insurance commissions.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":{"0":"post-43485","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/43485","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=43485"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/43485\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=43485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=43485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=43485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}