AFA calls for life code improvements
The Association of Financial Advisers (AFA) has welcomed the passage of the Life Insurance Reforms (LIF) through the House of Representatives but asked for greater certainty around elements of the reform.
AFA chief executive, Brad Fox, said the association was looking forward to seeing improvements to the Financial Services Council's (FSC's) Life Insurance Code of Practice, statements of advice (SOA), widening of approved product lists, and scrutiny and enhancements to life insurance claims handling and underwriting practices.
"We are looking forward to advisers having greater certainty and are keen to see elements of the life insurance reform package progressing," he said.
Fox also said while remuneration was one element of the reform package, the ramifications to business models and an adviser's sense of identity must not be underestimated.
"While most advisers understand that phased reductions in upfront remuneration from 2018 will be offset by higher ongoing remuneration, the change is still significant for many advisers," Fox said.
Fox said advisers must collaborate with their peers to understand how to embrace the changed remuneration models such as hybrid and level commissions and fees.
"For most advisers, transitioning successfully will bring increased practice valuations."
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