The Association of Financial Advisers (AFA) will again push for changes to the clawback proposal when it meets new Assistant Treasurer Kelly O’Dwyer this week.

“The primary concern... is the three-year clawback pushes too much responsibility from the insurers to advisers, and doesn’t support the best-interests duty responsibilities owed to the client,” AFA CEO Brad Fox said.

“It is important the Government appreciates shifting of responsibility from the institution to the adviser threatens the future of advisers that own or are employed in small business advice practices.”

He says the AFA has held further talks on life insurance reforms with many advisers and Liberal MP Bert van Manen, a former financial adviser.

“The AFA believes the Life Insurance Framework has placed too much focus on adviser remuneration and not enough on creating a long-term solution,” Mr Fox said.

“The current framework may deal with some of the public perceptions around commissions, but it doesn’t offer a true win for the public or the common good.”

The AFA will ask Ms O’Dwyer to support improvements to the framework, starting with clawback.

“The AFA will share some thinking on a solution that will meet the challenge to improve Australia’s understanding of the role life insurance plays in supporting financial security,” Mr Fox said. “Also the role that advice plays in securing the right protection and valuable support when it is time to claim.

“With this support, a far better vision for life insurance can be delivered.”