Minister for Revenue and Financial Services Kelly O’Dwyer has announced changes to the proposed Life Insurance Framework reforms, which include the removal of the potential direct carve-out.
Ms O’Dwyer says the changes follow ongoing consultation with stakeholders.
The reforms now establish a “level playing field” by applying the requirements equally to all advisers regardless of employment arrangements.
“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,” Ms O’Dwyer said in a statement.
Other changes include the commencement date of 1 January 2018 as well as 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,” Ms O'Dwyer said.
“The government is consulting on revised regulations to ensure that these important reforms work as effectively and efficiently as possible.”
Submissions for the revised legislation close on 4 November 2016.