AFA to lobby on LIF remuneration caps

The Association of Financial Advisers (AFA) will be examining whether there is an opportunity to lobby the government on increasing the Life Insurance Framework (LIF) cap on remuneration in the first year of the policy.

At a joint AFA and Financial Planning Association of Australia (FPA) webinar on the development of their Life Risk Guide for risk advisers, AFA general manager of policy and professionalism, Phil Anderson, was asked whether the financial groups were doing anything to get the LIF scrapped.

“I know that this is a hot issue for many risk advisers – the practical reality though is we’ve got to deal with this in stages,” Anderson said.

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“I don’t think LIF is ever going to be scrapped because I don’t think the government is going back on what they’ve done.

“Is there an opportunity to increase the cap in the first year is probably more the genuine question.”

Anderson said the AFA’s focus was to get through the LIF review which in April was announced would be built into the quality of advice review.

“So that's the first target, we get through that and then we are in a position to… say what does it need to be to ensure that every day Australians can get access to life insurance advice?” he said.

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