Bill
Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016
passed, as at 2017-02-22. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2016-10-12
- second reading — 2016-10-12
- second reading — 2016-11-28
- second reading — 2016-11-29
- second reading — 2016-11-29
- third reading — 2016-11-29
- introduced — 2016-11-30
- second reading — 2016-11-30
- second reading — 2017-02-09
- second reading — 2017-02-09
- third reading — 2017-02-09
- passed — 2017-02-09
- royal assent — 2017-02-22
Divisions
No divisions recorded. Most questions are decided on the voices; this does not establish that a bill was unopposed.
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2016-10-12.
The bill would ban commissions and other conflicted payments for life insurance advice, ending an exemption in the Corporations Act.
It would give ASIC power to set rules allowing some payments if insurers meet conditions on commission amounts and clawback requirements.
The changes start on 1 January 2018, and the government estimates compliance costs at $27.8 million each year.
- Removes the exemption from the ban on conflicted remuneration for life insurance products.
- Gives ASIC power to permit certain life insurance benefits by legislative instrument.
- Applies a ban on payments based on sales volume for life insurance.
- Includes transitional grandfathering arrangements in the Corporations Act.
- Uses an existing provision for ongoing reporting of policy replacement data to ASIC.
Consumers, financial advisers, life insurers, and the Australian Securities and Investments Commission.
Sources
em
billhome
frl act