Minister for Revenue and Financial Services Kelly O’Dwyer has provided the date she plans to re-introduce the LIF reforms into Parliament, as well as an update on the adviser education reforms.
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.
When asked if she expects any issues with passing the reforms, she 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,” Ms O’Dwyer 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.”
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