The government has today issued draft regulations to support its LIF package, providing guidance on the controversial 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.
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
- 17 Aug 2018Grandfathering is not in consumers' interests: KellBy Tim Stewart
- 17 Aug 2018Advisers can ‘professionalise’ clients’ philanthropyBy Lucy Dean and Killian Plastow
- 17 Aug 2018Standalone robo-advisers ‘will not attract’ HNW investorsBy Reporter
- 17 Aug 2018Assess super on value not fees, Rice Warner urgesBy Killian Plastow
- 16 Aug 2018ANZ taken to task over ‘misleading’ general adviceBy Reporter
- 16 Aug 2018Faith in adviser ethics fallsBy Reporter
- view all