No early calls on LIF details
Life/risk advisers may have to wait until well into November before seeing further formal progress around the development of the fine detail of the Life Insurance Framework (LIF), despite the major planning groups and the Financial Services Council (FSC) meeting with the new minister last week.
Representatives of the Financial Planning Association (FPA), the Association Financial Advisers (AFA) and the FSC met with new Assistant Treasurer, Kelly O'Dwyer, last week but all those contacted by Money Management signalled that the minister was still seeking to come to terms with the various portfolio issues.
Sitting at the heart of the LIF process for risk advisers are the proposed claw-back arrangements and suggestions that the three-year period is too long, but it is now clear that the new minister and her advisers will not be making any early announcements on the issue.
A part of the challenge for O'Dwyer is that a number of the key advisers who assisted former Assistant Treasurer, Josh Frydenberg, in dealing with the LIF have moved with their minister to his new portfolio as Resources minister.
The financial planning industry is also awaiting the Government's response to the Parliamentary Joint Committee report on education and professional standards, which is still expected to be tabled before the Parliament rises for its Christmas break.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
