AFA News 30 June 2022. Last week the Treasury released the submissions that they had received for the Quality of Advice Review. In total over 110 submissions have been published, including the AFA submission and a Joint Associations submission to which the AFA was a party.
Please click here for the Treasury webpage to see all of the published submissions.
Disappointingly some of the usual activist groups have called for extreme measures such as the removal of life insurance commissions and even the banning of asset-based fees. These groups clearly refuse to seek to understand the fact that it is often the clients who choose to pay for life insurance advice via commissions nor to acknowledge the reality that LIF and other reforms have already resulted in a significant reduction in the level of life insurance in Australia. They equally seem to be oblivious to the inevitable consequence that any further reduction in commissions will result in the substantial destruction of the individual-advised life insurance sector. We will have more to say on the flawed logic of these groups at a later point, however, it does serve to reinforce the point that we still have a battle in front of us to make sure that further counterproductive reforms do not result from the QAR.
We welcome any feedback on these other submissions via email to firstname.lastname@example.org.
Issued 30.06.2022. AFA Policy & Education Update