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Australia: Commission Restriction Becomes Margin Restriction

In Australia, Kelly O'Dwyer has announced changes to rules restricting commissions to ensure that direct sales cannot avoid the cap. Joanne Mather at the AFR reports:

The government was worried that some companies would try to dodge the cap by, for example, using mass customer databases to pitch policies while claiming not to be providing direct advice. 

"These reforms cover all life insurance sales involving advice, regardless of whether it's personal advice or general advice," Ms O'Dwyer will tell a conference of the Association of Financial Advisers (AFA) in Canberra.

"There is absolutely no carve-out for direct sales and the government will ensure future sales methods designed to specifically avoid the reforms will be captured including those where no advice is provided to the consumer."

Do check out the full article. Link


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