Regulator seeks consultation on proposed life insurance changes

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ASIC has released a consultation paper seeking feedback on proposed reforms to retail life insurance.

ASIC said it would seek consultation following the government's release of draft legislative amendments to remove the exemption from the conflicted remuneration provisions for life insurance advice, and to allow benefits to be paid to advisers if requirements imposed by ASIC are met.

The draft amendments would give the regulator the power to make a legislative instrument to set out the maximum level of upfront and trail commission payments permitted on life insurance products, and the amount of clawbacks to be paid to life insurers.

ASIC has asked for comments on its consultation paper by 29 January 2016. The regulator said it was also seeking feedback on the type of information life insurers should report to enable ASIC to monitor the effects of the reforms.