Assistant Treasurer and Minister for Small Business Kelly O’Dwyer has emphasised the government’s decision to move forward with the Life Insurance Framework will "align the interests of advisers, insurers and consumers".
Speaking at the FSC and BT’s Political Series breakfast this morning, Ms O’Dwyer outlined the actions the federal government will be taking through its financial system program, in response to the recommendations of the Financial System Inquiry.
As part of the government’s program, Ms O’Dwyer said, the LIF will play a key role in improving the financial services sector.
“We’ve also been working with the industry to develop measures to improve remuneration practices in the life insurance sector,” Ms O’Dwyer said.
“As part of our financial system program we have adopted the final industry reform proposal I announced earlier this month to improve the long-term sustainability of the sector, while at the same time better aligning the interests of advisers, insurers and consumers."
Ms O’Dwyer also said the government’s financial system program will commit to raising the professional, ethical and education standards for financial advisers.
“Subject to transitional arrangements advisers will be required to hold a degree, pass an exam, undertake continuous professional education, subscribe to a code of ethics and undertake a professional year before they can advise clients,” she said.
“These higher standards will place financial advice on a similar footing to other professions and in doing so increase consumer confidence and trust in the sector.”
Ms O’Dwyer said that, overall, the government's financial system program will set out a “blueprint” for how Australia will respond to the “challenges and opportunities” the industry is set to face in coming years.