The newly re-elected Morrison Federal Government will be subject to a united approach from the Financial Planning Association (FPA) and Association of Financial Advisers (AFA) on the key question of the future of life/risk commissions.
The AFA and FPA confirmed to Money Management their establishment of a Life Insurance Task Force, directly aimed at providing a single voice to the Government on what the advice industry believes should happen when the Life Insurance Framework (LIF) runs its course and is review by the Australian Securities and Investments Commission (ASIC) in 2021.
Formation of the taskforce was confirmed by both FPA chief executive, Dante De Gori and AFA chief executive, Phil Kewin, who said they believed it was important for the two groups to work collaboratively on the important issue.
Kewin said the two organisations were collaborating to ensure that the Government was receiving a consistent message.
De Gori said that much had been learned from the united front presented by the mortgage broking industry in defence of mortgage broking commissions.
“We want to deliver a common message and a signal that the two major bodies in the sector have come together on this particular issue,” he said.
The intended close working relationship between the FPA and AFA on life/risk commissions came in the wake of the two organisations joining together with the SMSF Association with respect to establishing and funding a code monitoring body under the new Financial Adviser Standards and Ethics Authority (FASEA) regime.