The Association of Financial Advisers (AFA) chief executive, Brad Fox, has claimed a minor victory as the Minister for Revenue, Kelly O’Dwyer, has confirmed the start date for the phasing down of risk commissions has been delayed until 1 January, 2018.
The AFA has consistently lobbied for a universal start date to include all channels of life insurance, where now employed channels, independent advisers, general advice models, and nil-advice life insurance models will have a level playing field.
The AFA is also continuing to lobby for a delay to the future Australian Securities and Investments Commission (ASIC) report on the success of the life insurance reforms to allow for evidence to be collected after the reforms come into effect.
Fox said the delayed start date would allow self-employed advisers more time to prepare their businesses for the significant reduction in initial commissions, while forcing employees of direct life insurance models to come under the regime of commission caps and extended clawback from the same start date as other financial advisers.
“It has taken consistent, clear advocacy by the AFA on behalf of self-employed financial advisers to ensure that direct sellers of life insurance measure up to the standards expected of professional members of the AFA under the life insurance reforms,” he said.
