The federal Minister for Small Business, Bruce Billson, has discussed with advisers the effects the life insurance reforms will have on their businesses, forwarding their concerns to Assistant Treasurer Josh Frydenberg.
A spokesperson for the minister told Risk Adviser Mr Billson had been in talks with advisers, when asked whether the government is concerned the reforms might see the mass closure of risk advice businesses
“The minister has met with a number of independent financial planners regarding proposed changes in the financial advice space,” the spokesperson said.
“[Mr Billson] has shared these insights with the Assistant Treasurer to help inform the government’s response to the Financial Systems Inquiry."
Following the release of the Life Insurance Framework, advisers raised concerns over their ability to continue operating their businesses.
Several members of the risk advice industry have subsequently been imploring the government and Mr Frydenberg to reconsider the reforms, particularly the proposed three-year clawback period.
Meanwhile, the AFA has said the association is trying to influence the specific details of the three-year clawback period so it does not adversely affect advisers.
“We are concerned that the three-year clawback not be used to shift an unreasonable burden from the institutions onto small business financial advisers that do the right thing,” AFA chief executive Brad Fox said.
The AFA recently launched a series of roadshows in every capital city across Australia to help advisers transition with the reforms.
However, the Association of Independently Owned Financial Professionals, led by executive director Peter Johnston, has refused to accept the proposals, making a last ditch effort to try and topple the reforms.
Launching a campaign on 24 August 2015, Mr Johnston urged all advisers to contact their members of parliament to put forward their views on the reforms.
“Now is an opportune time to commence an 'email bombardment' of your local sitting Coalition member pointing out that these proposed changes are not in the best interests of consumers, the nation's underinsurance dilemma and small business," Mr Johnston wrote in a letter to AIOFP members.
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