The bill that would have brought the Life Insurance Framework (LIF) into effect has lapsed, but it may still be implemented on the proposed 1 July date, says FPA chief executive Dante De Gori.
A spokesperson for Assistant Treasurer Kelly O'Dwyer confirmed to ifa yesterday that the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 lapsed because it did not reach royal assent before the session of Parliament was terminated.
"When the Parliament is prorogued, like it has been, all bills that haven't received royal assent lapse," the spokesperson said.
"The bill could be reintroduced in the future but it has to go through the process again. For the moment, it's lapsed but it doesn't mean that it won't be reintroduced before July."
Mr De Gori believes it will be re-introduced, and that the 1 July implementation date remains plausible.
Prime Minister Malcom Turnbull confirmed this week that there will likely be a double dissolution election on 2 July, after the Australian Building and Construction Commission reforms were rejected twice by the Senate.
"Our understanding is that there is still an opportunity for government to put forward the LIF bill as long as the Senate keeps sitting up until any time before the election is called," Mr De Gori told ifa.
"I don't believe the Prime Minister is going to officially call the election until after the (May 3) budget so therefore Senate and Parliament have to do something between now and then.
"I think they will keep sitting and I think they will take the opportunity to have the LIF bill debated and voted on. My prediction is they will do it but it probably won't happen until next week."
Earlier this month, the government released draft regulations that will support the life insurance reform package, including further guidance on grandfathering and clawback provisions.
The final date to make a submission for these regulations is 28 April.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 15 Feb 2019ASIC to undertake harsher penalties against banksBy Eliot Hastie
- 15 Feb 2019Court restrains unlicensed firm from operatingBy Adrian Flores
- 15 Feb 2019ASIC used Dover whistleblowing to shut licensee downBy Adrian Flores
- 15 Feb 2019Minimal time spent on client engagement, survey findsBy Adrian Flores
- 15 Feb 2019Advice regtech aims to ease CPD burden under FASEABy Adrian Flores
- 14 Feb 2019AMP adviser network declined 4.6% in 2018By Adrian Flores
- view all