The Financial Planning Association (FPA) has welcomed the revised Life Insurance Framework regulations on remuneration.

In a brief submission to Treasury, it says the Federal Government has taken a “sensible approach” to ensure sustainability of the life insurance advice industry.

It has also welcomed the transition period, which allows advisers to change their business models.

But the FPA has raised concerns about grandfathering commission payments.

“Where an existing commission is grandfathered and there is a sale of business or transfer of benefit, there does not appear to be a consistent treatment with the Future of Financial Advice (FOFA) treatment of grandfathered payments,” the submission says.

“We do not believe this is the intent of the framework and ask that consistent grandfathering arrangements to FOFA be applied.”