Former NSW opposition leader Kerry Chikarovski said the proposed arrangements around the Life Insurance Framework (LIF) were the best possible outcome and much better than a negotiated legislated solution.
Opening the Workplace Super Specialists Australia (WSSA) conference in Sydney this morning, Chikarovksi said that conversations with senior Federal Opposition figures had made it clear the LIF proposals were a good compromise.
Chikarovski said those figures had indicated the Federal Opposition wanted a 20 per cent flat commission structure and would have pushed that position had it been in power.
“In my personal view, advisers are much better off with the deal the associations have done than what would come out of parliament. It would have been hell of a lot worse than anything that has been reached,” she said.
Chikarovski said it was important to get a solution that was not related to legislation because such a solution would not get through parliament.
According to Chikarovksi both the Federal Opposition and the Greens would oppose the LIF framework and would push for low flat commissions while independents in the senate varied in their support of financial services and advisers.
Her comments echo those of the Association of Financial Advisers (AFA) chief executive, Brad Fox, who also contended the LIF framework was the best outcome from the negotiation, with Chikarovski stating she had been recently involved in advising the AFA on its negotiation with government.
She also stressed the ongoing need for education around the role of advice and the place of financial services in Australia stating the industry faced an image problem.
“The problem the industry has is that number of people aggrieved by bad advice is minuscule compared with those who have benefitted from advice.”
