CALI supports the introduction of standardised informed consent for Australians about how their financial adviser is remunerated for providing personal advice about life insurance products. This implements the recommendations of the Quality of Advice Review that an adviser who provides personal advice must obtain the client’s informed consent before accepting a commission related to the sale of insurance products.
However, as currently drafted the Bill would also make it unlawful to pay or receive commissions for the distribution of life insurance products under general advice. We note the Assistant Treasurer and Minister for Financial Services has said this is not the Government’s intent and the legislation will be amended to ensure general advice commissions are not affected. With this amendment, CALI supports the passage of the Bill.