The Federal Coalition will be raising the issue of general insurance brokers receiving payments for products sold through superannuation at a Senate Estimates hearing this week.

Shadow Financial Services Minister Mathias Cormann says he will be asking Treasury why general insurance brokers will receive commissions while life insurance adviser payments are banned.

“I will certainly ask further questions about this to Treasury during Senate Estimates to clarify,” he told insuranceNEWS.com.au. “I want to know if we are now going to see Future of Financial Advice (FOFA) Marks three and four and five.

The FOFA reforms have been through various stages of amendment since Assistant Treasurer Bill Shorten announced the reform package.

Last month insuranceNEWS.com.au identified the abnormality regarding insurance commissions being paid for products sold through superannuation funds.

Senator Cormann has attacked Mr Shorten for allowing this loophole in the reforms to reach this stage.

“Bill Shorten is all over the place on this,” he said. “He is making policy on the run.”

He called on the minister to make clear statements about what is being proposed under the reforms “rather than tinkering with various aspects of them”.

“On the face of it what he appears to be planning seems an inappropriate way to go,” Senator Cormann said.

“But who knows what his actual policy position on risk insurance inside superannuation is.

“Less than a month ago he was proposing to ban all commissions on risk insurance inside super, which we think is wrong. Now he appears to be saying that some might be in and others out.

The FOFA reforms have also run into another problem, with key independent MP Rob Oakeshott saying he will not support the opt-in proposals which require consumers to re-sign contracts with their financial adviser every two years.

Mr Oakeshott says he is not entirely opposed to the opt-in proposal, but believes the period should be longer.

Senator Cormann said the Coalition welcomes Mr Oakeshott’s concerns and hopes the independent MP will take a similar view on life insurance commissions.

The ALP Government requires the votes of the independent MPs to ensure any FOFA bill is passed by the House of Representatives, and Mr Oakeshott’s opposition to the opt-in proposal will mean it will have to do a lot more work to get the bill into law.