AFA says LIF debate ‘based on ideology’
The debate on the Life Insurance Framework (LIF) is based around ideologies that are difficult to shift, says AFA chief executive Brad Fox.
In a speech to advisers at the AFA’s National Practitioner Roadshow in Sydney on Monday, Mr Fox said it was irrelevant whether people agree on ideology, because ideology is an ingrained set of beliefs.
“[The LIF debate] has been an issue that is based on ideology, and the thing with ideologies is that they’re very difficult to shift and to change,” Mr Fox said.
“Our politicians, regardless of which team or colour they come from, are of the view – which the consumer groups hold, the consumer action law centres hold, Choice [magazine] holds as well – is that commissions equal conflict of interest.
“That’s an ideological point of view. It doesn’t have to be right or wrong, but the strength of an ideology means that it is hard to shift.”
Mr Fox also noted the implications around ideology for the incoming Senate on LIF reforms.
“We know that [Senator Nick] Xenophon doesn’t want commissions,” he said.
“We know that the Greens really don’t want commissions.
“We know that Labor would rather see clawback [go] longer and probably [want] level commissions.
“And we know that [Senator-elect Pauline] Hanson will follow somebody else who might know, which is probably going to be Xenophon,” Mr Fox concluded.
Class action filed over grandfathered commissions
Major law firm Slater and Gordon has today filed a class action on behalf of 500...
AFSL forced to shut down robo-advice tool
A Sydney-based licensee has voluntarily shut down two digital advice tools follo...
Closing advice gap on ASIC’s radar for 2020
ASIC chair James Shipton says he is “acutely aware” of the growing shortfall...