ISA’s submission focuses on commissions for advice provided in connection with the sale of life insurance. In our view, these commissions should be banned.
- The Quality of Advice Review’s consultation paper does not contain any evidence that banning these commissions will contribute significantly to underinsurance. This was the threshold requirement to retain such commissions set out by Commissioner Hayne, and there is therefore no basis for the proposal that commissions should be retained.
- These commissions also incentivise financial advisers to recommend retail life insurance products over life insurance inside super, even if life insurance inside super is more suitable for the client’s circumstances. This conflict of interest will only lead to poor consumer outcomes.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.