Urgency in Financial Reform: A Call for Swift Action
Urgency in Financial Reform: A Call for Swift Action
2
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Christine Cupitt, CEO of the Council of Australian Life Insurers, has strongly expressed the urgent need for rapid legislative reform in financial advice.
With an upcoming election threatening to stall legislation, time is of the essence to ensure timely implementation.
The financial sector is poised for the release of the second tranche of the Delivering Better Financial Outcomes (DBFO) legislation. On 10-11 February, the sold-out Professional Planner Advice Policy Summit will convene at Old Parliament House in Canberra, ACT, focusing on how essential reforms can broaden access to financial and life insurance advice.
During the summit, Cupitt will speak at the 'Reviving Life Insurance Advice Ecosystem' session to highlight the potential of onboarding a new class of adviser. This initiative aims to make life insurance advice more accessible, with the hope that legislative action will precede the forthcoming federal election.
Cupitt emphasizes the necessity for the government to expedite the legislative process. “Millions of Australians and their families are waiting in line for that affordable advice, and delays to the legislation mean that people are going to be waiting longer and not having access to the advice they need to build their financial safety nets,” she insisted to Professional Planner.
The urgency is amplified by the recent resignation of Minister for Financial Services, Stephen Jones, with no replacement yet announced. This development occurs as Labor signals its dedication to pushing forward advice reforms.
The forthcoming DBFO reform is especially critical in establishing the new advisory class. Cupitt asserts that, “Life insurance stands ready to implement the new class of adviser, but it can’t happen overnight.”
She further explains that developing and authorizing new educational courses for incoming advisers is a step-by-step process that requires time. These courses aim to equip advisers with the necessary training for effective service delivery, and also to set a foundation for their journey towards becoming fully qualified advisers.
Cupitt envisions these preparatory programs as initial steps towards more extensive adviser qualifications. “We want to make sure that the settings are right to encourage people to work for life insurance and provide that more simple advice, but also see that as a pathway for people to go away and get qualified to become a more comprehensive, fully qualified adviser,” she explained.
The summit discussions will additionally address potential improvements to the Life Insurance Framework, although the Council of Australian Life Insurers remains supportive of its current structure. This framework, which regulates commissions at 60 percent upfront and 20 percent ongoing, has drawn backing from Cupitt. She stated, “We have been very clear that we support commissions in relation to life insurance advice, and we support the Life Insurance Framework in its current form.”
If the government initiates consultations regarding changes to the framework, Cupitt assured, “We would participate in that consultation.”
This article references content originally reported by Professional Planner.
Published:Tuesday, 4th Feb 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
As of 1 July 2025, the Department of Health, Disability and Ageing has introduced a professional indemnity insurance (PII) product specifically designed for midwives providing intrapartum care. This development, under the Midwife Professional Indemnity Scheme (MPIS), ensures that private midwifery practitioners now have access to insurance coverage encompassing all facets of their practice, including intrapartum services. - read more
In recent developments within the Australian healthcare sector, a significant number of bariatric surgeons are contemplating the future of their medical practices due to a substantial increase in indemnity insurance premiums and a rising incidence of legal claims. This trend poses potential challenges to the accessibility of obesity-related procedures for patients across the country. - read more
Recent projections indicate that global health insurance costs are set to rise by 10.3% in 2026, marking a continuation of the upward trend observed in recent years. This follows a 10% increase in 2025 and a 9.5% rise in 2024, underscoring the sustained inflationary pressures faced by insurers and employer-sponsored health plans worldwide. - read more
Marsh, a leading insurance broker, offers tailored insurance solutions designed specifically for fitness professionals across Australia. Recognising the unique risks associated with the fitness industry, Marsh provides comprehensive coverage options to safeguard personal trainers, gym owners, and other fitness practitioners. - read more
The contemporary business landscape in Australia is witnessing a significant shift towards the gig economy, with a growing number of professionals opting for the flexibility and autonomy that freelancing offers. This trend has not only revolutionized the way work is performed but has also introduced new dynamics in the legal distinctions between freelancers and traditional employees. - read more
As a small business owner, understanding the intricacies of liability insurance is pivotal to safeguarding the fruit of your hard work. Insurances such as professional indemnity and public liability are not just safety nets; they are vital components that can mean the difference between bouncing back and closing down following unforeseen legal hurdles. - read more
Public liability insurance is a key consideration for business owners in Australia. This type of insurance helps protect businesses against claims made by third parties for injuries or property damage. But what exactly does it do? In simple terms, public liability insurance covers legal costs and expenses, as well as any damages awarded, if your business is found liable for an incident. - read more
Welcome to the crucial world of risk management for Australian tradesmen. Whether you're a seasoned professional or just starting, understanding and mitigating the inherent risks in the trades industry is paramount to both the safety and sustainability of your business. This article intends to guide you through the world of risk management, emphasizing the pivotal role of liability insurance. - read more
Start Here !
Knowledgebase
Policyholder: The individual or entity who owns the insurance policy.
