Industry and minister meet on risk reforms

A cohort of representatives from the AFA, FPA and the FSC will today meet with the Assistant Treasurer, Kelly O'Dwyer, in an attempt to get more clarity about the transition date for the Life Insurance Framework (LIF) and to nut out the details of the clawback provisions.

Speaking at a media briefing at the AFA 2015 National Adviser Conference in Cairns yesterday, AFA national president Deborah Kent said that all stakeholders who were previously involved in the framework were being brought back to the table.

"Minister O'Dwyer has made it clear that she is happy to collaborate on what should be the ... definitions of clawback, so I think now is our time to try and get clarity around that for our members – that's the most important thing," she said.

"We know that Kelly has clearly stated to us that the framework is there to work with and she's happy to work to get clarification around a number of issues. So going in there we know that we'll at least be negotiating around the detail."

Transition arrangements would also be discussed, Ms Kent said.

"I know certainly the minister said that July [2016] is the start date. If there is any way we can move around that, we'll find out on Wednesday," she said.

"The points will be around the detail. She will probably let us know where she's at and she does want to work with the groups to get the detail right. She does understand that there are some concerns."

The AFA is going to meet with Minister O'Dwyer against a backdrop of some concern in the advice industry, although Ms Kent said the AFA AGM on Monday allowed many advisers to vent their frustrations.

"The AGM I believe went well. Certainly we know that there are a lot of advisers out there that want to get clarity about what's happening and we understand that and we do empathise with the issues that some people are going to face in their businesses," she said.

"So yesterday we let them talk to us about that. We accepted conversation we suggested that we are walking together the AFA is a collaborative association and certainly we need to be doing working together on this. Everyone has the right to voice their opinions and they certainly were heard."

Ms Kent said she believes advisers are becoming accustomed to the concept of the LIF.

"The general feeling around the place is that generally advisers are [appeased]," she said. "We've given them clear explanation over the whole process, clear explanation for the next stage. The feedback I'm getting is that they're fine and they know we're doing the job for them."

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