With the federal government focused on a set “timeline” for the introduction of the Life Insurance Framework (LIF), the life sector can expect to see final details of the legislation released in February, according to the AFA.
Speaking to Risk Adviser, AFA chief executive Brad Fox said the life insurance industry can soon expect to see whether the government will make any changes to the life insurance reform draft legislation.
“The government has been pretty clear on their timeline agenda, which is to get the LIF and professional standards [passed] through the autumn sitting of Parliament,” he said.
“That would mean they would expect to have some final legislation somewhere during the month of February.”
Maintaining “good engagement” with the Treasury and Assistant Treasurer Kelly O’Dwyer’s office since submissions for the draft legislation closed, Mr Fox explained that the industry will soon know if the government has taken any of the recommendations on board.
Mr Fox added that the association's concerns with the legislation offering powers to ASIC to make further amendments to commissions were due to the lack of any required consultation with industry.
“The key part for us is: Will ASIC undertake or be required to undertake the sorts of consultations that we would expect they would undertake?” he asked.
“It is not that ASIC wouldn’t do them. But if we look at the professional standards legislation there is particular drafting of the role of the professional standard setting body and how it needs to consult, interact with the market and with the minister, and that same kind of drafting wasn't included in the [LIF].”
“So, [it is] just making sure that any future changes are the result of direct consultation and examination process,” he added.