The Government has announced the receipt of a reform package on behalf of the retail life insurance industry (effectively its response to the Trowbridge report and Financial System Inquiry).

The reform package is designed to address the issues identified by ASIC in Report 413 Review of Retail Life Insurance Advice (2014) and avoid significant Government legislative intervention based on recommendations made by the Financial System Inquiry and the Trowbridge report. The Government has welcomed the proposed industry reform and it appears to be a sensible compromise.

Treasury has also announced its intention to progress certain proposed minor and technical refinements to the FOFA laws contained in the Corporations Act 2001 which were introduced in 2012.  There do not appear to be any significant changes of concern for the general insurance or life risk insurance industries as those that are relevant, merely “tidy up” unintended omissions relating to CCI.

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