There are concerns that level commissions common in the current Australian life industry could also be cut as a part of the proposed Life Insurance Framework scheme. AFA COO Phil Anderson is quoted as saying that he wants to hold life insurers to their commitments on level commissions. He said:
“Any move to reduce the rate of level commission payments has nothing to do with the quality of financial advice,” he said, adding, “The AFA will strongly resist any concerted actions by the life insurers to collectively set a cap on the rate of level commissions.”
Link to RiskInfo.co.au article.