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
- 23 Oct 2018Platform provider remains ahead of the packBy Eliot Hastie
- 23 Oct 2018Wentworth loss opens Coalition to FASEA changesBy James Mitchell
- 22 Oct 2018ASIC reveals findings of CBA enforceable undertakingBy Adrian Flores
- 22 Oct 2018ARCO fund added to BT Panorama platformBy Adrian Flores
- 22 Oct 2018NAB well-placed to sell MLC wealth businessBy James Mitchell
- 22 Oct 2018CBA announces appointment of CFOBy Reporter
- view all