The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today released revised life insurance remuneration regulations for consultation.
The regulations support the Government's reforms to the remuneration practices in the life insurance advice sector, to improve the quality of financial advice and boost consumer confidence.
Legislation to progress these reforms, the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016, was introduced into the Parliament on 12 October 2016.
The revised regulations follow ongoing consultation with stakeholders on the reforms and establish a level playing field by applying the new requirements equally to all advisers regardless of employment arrangements.
In addition, the revised regulations enable the reforms to apply to both advised and direct sales of life risk insurance products. This maintains the integrity of the reforms by ensuring they apply equally regardless of distribution channel.
Other changes have also been made to simplify the regulations and reflect the revised reform commencement date of 1 January 2018, including the removal of transition arrangements that allowed commissions to be paid on stamp duty for one year only.
"The life insurance reforms form part of the Government's actions to build consumer confidence in the financial services sector through initiatives such as improving professional standards for financial advisers," Minister O'Dwyer said.
"The Government is consulting on revised regulations to ensure that these important reforms work as effectively and efficiently as possible."
Submissions close on 4 November 2016.