Speaking to the media at the AFA 2016 National Adviser Conference last week, Ms O’Dwyer said she plans to re-introduce LIF on Wednesday or Thursday this week.
Ms O’Dwyer said she believes most people accept it is important to align consumer interests with remuneration structures.
“There have been three separate reports, all of which have included that there needs to be significant change in this area,” she said.
“The government has worked with the industry to deliver a package of reforms that we think work for consumers and ensure the viability of the industry at the same time.
“We don’t want to add to the underinsurance problem in Australia. We want to make sure that people who want access to life insurance products are able to get that access, but we want to make sure there is no conflict in the advice that is being provided at the same time because of how someone is being paid.”
Ms O’Dwyer added that the government is “proceeding with pace” to introduce into Parliament the reforms that will lift education standards for advisers.
“You would be aware that we have had a lot of industry stakeholder consultation before the election. We’re going to proceed with the next round of consultation on those reforms,” she said.
“We’ve got an agreement from the banks to actually fund the government statutory body that will look at all of these professional standards, the ethical framework, the exam and alike.
“The government is looking to actually have that legislation draft into Parliament before too long.”
Here is a minister who accidentally supported a motion condemning the Government trying to rush through a bill that she has not once been able to state any consumer benefit for and just days before damning findings into high claims denials for direct insurance sold. This bill of course will only increase direct insurance in the future.
This is a con job by the O’Dwyer / FSC tag team and nothing more.
So Kelly, after all the Bank-and-Insurance-company-sponsored-and-funded reviews, why can’t you or anyone else tell us where the benefits are for consumers in the LIF? You can’t so it is time to rethink. You know full well that the LIF will only benefit the Banks and Insurance companies, who are responsible for the vast amount of wrongs committed against consumers, yet your LIF will smash the non-aligned advises who are the only ones with a decent track record with clients. And all this is on the record, you just choose to ignore it.