Treasury to assume control of LIF review
Treasury will now assume responsibility of the Life Insurance Framework (LIF) review, preventing overlap with the quality of advice review.
Speaking at the Financial Services Council (FSC) Life Insurance Summit, Senator Jane Hume, said: “One of the things we’ve been trying to do, and you will see this around the announcement of the single disciplinary body, is to make sure we have alignment in the work we’re doing.
“A lot of good work has been done, particularly by the FSC on financial advice and we would like to see this feed into the quality of advice review.
“But it seems silly to have one review on life insurance at ASIC and another review about the quality of advice in Treasury when there’s going to be so much overlap.
Hume noted the review would consider the "full breadth of issues impacting on both quality and affordability of all forms of financial advice".
Hume said ASIC had already started its data collection but that data would now come back to Treasury for analysis.
"As we undertake the quality of advice review, important issues like the degree of underinsurance and maintaining access to affordable, quality advice will be at the forefront of our minds," she said,
"These elements will enable us to achieve the objective of a thriving life insurance sector that provides access to quality insurance products tailored to meet the needs of Australians and their loved ones at a time when they need it most."
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.