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Loopholes Rife in Amended LIF Bill

The updated life insurance framework (LIF) legislation now before Parliament fails to deal with a number of potential issues that could arise under the new commission rules, including if an adviser changes licensees during the two-year clawback period, and if clients are incentivised through rebates from their adviser to hold a policy for two years, according to a leading industry law firm.

In a recent blogpost, Imac legal and compliance principal lawyer Ian McDermott said the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill, which had been amended from its original form before being reintroduced to Parliament late last year, still contained several surprising loopholes with regard to the proposed two-year commission clawback period for advisers.

Read the full article in Financial Observer

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