ASIC updates payment guidelines as framework looms
The Australian Securities and Investments Commission has updated Regulatory Guide 246 on conflicted remuneration.
It includes guidance on life insurance remuneration reforms, including those due to start next year under the Life Insurance Framework.
The changes from January 1 mean remuneration arrangements used in some life insurance distribution channels, including direct sales, will need to alter.
Conflicted remunerations include benefits for information given to an adviser or licensee and any volume payments.
Another conflicted remuneration is a benefit provided to someone who mails consumers factual information on how to apply for life products, without providing advice.
This will apply if a payment is made for the volume of information sent out.
The regulator says it will monitor the industry’s implementation of life insurance remuneration reforms, and will consider developing additional guidance to address specific issues or concerns.
The guideline also details monetary and non-monetary benefits, including free or subsidised business equipment services and hospitality benefits.
Conference fees paid by providers will be treated as conflicted remuneration, it says.