Speaking at the FPA Professionals Congress in Brisbane last week, ASIC senior executive leader Louise Macaulay said this review is part of the final Life Insurance Framework announced by Assistant Treasurer Kelly O’Dwyer earlier this month.
“The Assistant Treasurer has asked us to look at simpler and effective disclosure for consumers and also assisting advisers to make better use of these documents,” she said.
“We’ll start that in the middle of next year.”
Ms Macaulay added that some draft legislation is expected by the end of the year, as well as ASIC’s consultation, which is due before Christmas Day.
“We will be involved in the consultation because part of the implementation process will be ASIC making an instrument which will complement the legislation,” she said.
“We’re hopeful we will be able to put our consultation at the same time as Treasury.”
The government released the final LIF package earlier this month, reducing the three-year clawback policy to two years, but making no changes to commission rates.
Ms O’Dwyer said ASIC will undertake a review of the reforms in 2018, and if the review does not identify “significant improvement”, the government will move to mandate level commissions, as recommended by the Murray Inquiry.
Let’s just call it a Remuneration Disclosure Plan (RDP). That’s what it’s all about isn’t it?
The SOA could be as simple as a spreadsheet with a one page summary, rather than the 50 pages we currently provide.