{"id":83046,"date":"2026-06-30T15:15:58","date_gmt":"2026-06-30T05:15:58","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=83046"},"modified":"2026-07-03T10:32:58","modified_gmt":"2026-07-03T00:32:58","slug":"reviewing-risk-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2026\/06\/30\/reviewing-risk-commissions\/","title":{"rendered":"Reviewing Risk Commissions"},"content":{"rendered":"<div id=\"polls-367\" class=\"wp-polls\">\n\t<form id=\"polls_form_367\" class=\"wp-polls-form\" action=\"\/index.php\" method=\"post\">\n\t\t<p style=\"display: none;\"><input type=\"hidden\" id=\"poll_367_nonce\" name=\"wp-polls-nonce\" value=\"f0d8d6f8d3\" \/><\/p>\n\t\t<p style=\"display: none;\"><input type=\"hidden\" name=\"poll_id\" value=\"367\" \/><\/p>\n\t\t<div class=\"pollHeader\" style=\"margin-bottom:10px\"><strong>Should the Life Insurance Framework Commission Caps be Reviewed?<\/strong><\/div><div id=\"polls-367-ans\" class=\"wp-polls-ans\">\n\t\t<div style=\"margin-bottom: 3px;clear: both;border-bottom: dotted 1px #fff;padding-bottom: 2px;overflow:auto\">\r\n\r\n<span style=\"float: left\"><input type=\"radio\" id=\"poll-answer-1426\" name=\"poll_367\" value=\"1426\" \/><\/span> \r\n\r\n<label for=\"poll-answer-1426\" style=\"padding-left: 5%;float: left;width: 85%\"><span>Yes<\/span><\/label>\r\n\r\n<\/div><div style=\"clear:both\" \/><\/div>\n\t\t<div style=\"margin-bottom: 3px;clear: both;border-bottom: dotted 1px #fff;padding-bottom: 2px;overflow:auto\">\r\n\r\n<span style=\"float: left\"><input type=\"radio\" id=\"poll-answer-1427\" name=\"poll_367\" value=\"1427\" \/><\/span> \r\n\r\n<label for=\"poll-answer-1427\" style=\"padding-left: 5%;float: left;width: 85%\"><span>No<\/span><\/label>\r\n\r\n<\/div><div style=\"clear:both\" \/><\/div>\n\t\t<div style=\"margin-bottom: 3px;clear: both;border-bottom: dotted 1px #fff;padding-bottom: 2px;overflow:auto\">\r\n\r\n<span style=\"float: left\"><input type=\"radio\" id=\"poll-answer-1428\" name=\"poll_367\" value=\"1428\" \/><\/span> \r\n\r\n<label for=\"poll-answer-1428\" style=\"padding-left: 5%;float: left;width: 85%\"><span>Not sure<\/span><\/label>\r\n\r\n<\/div><div style=\"clear:both\" \/><\/div>\n\t\t<div style=\"clear: both\"><div style=\"text-align: center;font-weight: bold\"><input type=\"button\" value=\"   VOTE   \" class=\"Buttons futura\" onclick=\"poll_vote(367);\" \/><\/div><div style=\"text-align: center;font-size: 16px;font-weight: bold\" class=\"futura\"><a href=\"#ViewPollResults\" onclick=\"poll_result(367); return false;\" title=\"View Results Of This Poll\">View Results<\/a><\/div><\/div><\/div>\n\t<\/form>\n<\/div>\n\n<p>Our latest poll once again visits the issue of risk commissions, as we seek your view on whether it&#8217;s time to review the current LIF commission caps.<\/p>\n<p>It&#8217;s been exactly a year since we last had this conversation with Riskinfo readers and it also coincides with news this week that the New Zealand regulator will be placing a renewed focus on conflicted adviser remuneration over the next twelve months due to what it says have been continuing &#8220;&#8230;reports of misconduct motivated by high upfront commissions&#8221; (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2026\/06\/30\/risk-commissions-under-kiwi-regulators-spotlight\/\" target=\"_blank\" rel=\"noopener\">Risk Commissions Under Kiwi Regulator&#8217;s Spotlight<\/a>).<\/p>\n<p>While the NZ regulator is only at the beginning of this review process, the Australian financial advice sector has been grappling with the fallout from ASIC&#8217;s Review of Retail Life Insurance Advice (<a href=\"https:\/\/download.asic.gov.au\/media\/2012616\/rep413-published-9-october-2014.pdf\" target=\"_blank\" rel=\"noopener\">ASIC Report 413<\/a>) since October 2014, culminating in the capping of risk commissions under the Life Insurance Framework reforms &#8211; within a free-market society &#8211; to their current hybrid 60\/20 levels.<\/p>\n<p>Twelve months ago, this conversation focussed on whether the LIF remuneration model should include a minimum commission payment (<a href=\"https:\/\/riskinfo.com.au\/news\/2025\/06\/30\/renewed-call-to-review-lif-commission-structure-trowbridge\/\" target=\"_blank\" rel=\"noopener\">as advocated by John Trowbridge<\/a>) designed to allow more low-middle income Australians to access risk advice (see also: <a href=\"https:\/\/riskinfo.com.au\/news\/2025\/07\/08\/strong-support-for-change-to-lif-commission-structure\/\" target=\"_blank\" rel=\"noopener\">Strong Support for Change to LIF Commission Structure<\/a>).<\/p>\n<blockquote><p>&#8230;the life insurance industry continues to suffer the consequences of fewer advisers [and] lower levels of new life insurance being written<\/p><\/blockquote>\n<p>Today, however, as any other meaningful sector reform initiatives from the Government appear to be tethered to its response to the fallout from the First Guardian and Shield Master Funds advice scandal, the life insurance industry continues to suffer the consequences of fewer advisers, lower levels of new life insurance being written and fewer Australians accessing the life insurance advice needed by so many.<\/p>\n<p>Is it surely past time for the Government to act on risk commissions &#8211; to review them at the very least? Tell us what you think and we&#8217;ll report back next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll once again visits the issue of risk commissions, as we seek your view on whether it&#8217;s time to review the current LIF commission caps. It&#8217;s been exactly a year since we last had this conversation with Riskinfo readers and it also coincides with news this week that the New Zealand regulator will [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":83054,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":["post-83046","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83046","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=83046"}],"version-history":[{"count":5,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83046\/revisions"}],"predecessor-version":[{"id":83064,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83046\/revisions\/83064"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/83054"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=83046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=83046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=83046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}