The government has released draft remuneration regulations that will support its life insurance reform package, including providing further guidance on grandfathering and clawback provisions.
In an exposure draft, the government said the regulations, combined with the legislation, will implement the reform package and are intended to address a number of issues raised during consultation on the legislation.
These include providing a 12-month transition period during which stamp duty relating to death benefits may be included in the calculation of commissions, while industry makes necessary system changes to exclude it in the future.
Further, it will prescribe certain limited circumstances under which 'clawback' arrangements are not intended to apply, such as in the case of self-harm by the insured, or where a premium is reduced due to a decision by the insured to quit smoking.
Arrangements will also be provided for the grandfathering of existing employee-employer remuneration in a manner broadly consistent with that under FOFA, the government said.
The final date to make a submission to the draft regulations is 28 April.
In February, Assistant Treasurer Kelly O'Dwyer introduced the LIF reform legislation into Parliament. Last month, the Senate Economics Legislation Committee recommended that the legislation be passed without any changes.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 22 Aug 2017O’Dwyer announces EDR panelBy Staff Reporter
- 22 Aug 2017Advisers must become ‘lifestyle coaches’: ZurichBy Jessica Yun
- 22 Aug 2017Elders signs 18th advice practiceBy Staff Reporter
- 22 Aug 2017AIA launches ‘Claims on Wheels’By Staff Reporter
- 22 Aug 2017Cost and risk hold back open APLsBy Aleks Vickovich and Killian Plastow
- 22 Aug 2017Majority of Aussies have no retirement plan: researchBy Staff Reporter
- view all