In a statement, the AFA said it endorses the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016, which was introduced by Minister for Revenue and Financial Services Kelly O’Dwyer into the lower house yesterday.
The association said it contributed to an agreement in principle with Ms O’Dwyer on a package of life insurance reforms in November 2015, and has worked diligently since then to achieve a level playing field across all channels of the life insurance market through the detailed drafting and consultation period.
AFA chief executive Brad Fox said that while the bill does not give its members everything they want, there are many other stakeholders the government needs to satisfy.
“On balance this bill, as part of the package of reforms that includes the Life Insurer Code of Practice, an ASIC-led Statement of Advice review project and regular reporting from insurers to ASIC on lapse rates, means that consumers can have more trust and confidence in life insurance,” Mr Fox said.
Ms O’Dwyer said she reintroduced the legislation into Parliament to improve the quality of financial advice and boost consumer confidence in the life insurance sector.
She added that ASIC’s review of the life insurance advice sector, to determine the effect of the reforms, has been pushed back to 2021.
“The bill addresses problems with remuneration practices leading to poor quality life insurance advice for consumers that have been highlighted in several independent reports, including a 2014 ASIC Review of life insurance advice, the industry-initiated Trowbridge Review and the Financial System Inquiry,” Ms O’Dwyer said.
Since this publication censors the response please go to my linkedin site for the article Trowbridge has put out about us Advisers, it is rude.
Some time ago I contacted AFA to try an reactivate chapter meetings in Cairns so members could have input, I was told by the then state representative that AFA was being run from Brisbane and there was no need for local chapter meetings!
If you don’t stand for something you will fall for anything rings true with the AFA
The Trowbridge report was not a industry lead review , it was a FSC lead attack on advisers and clients for their pay masters (the big 4 banks) and it avoids the major issues in the industry being the extremely poor insurance contacts under the industry super fund and group insurance fund.
Brad Fox that’s why there was the EGM we do not want the AFA name being used every time they say oh the industry group AFA has backed this because that leaves a wide birth on what the connotations are so AFA needs to be clear that there is still concerns and not just put it in the too hard basket because we are all watching.