Federal Treasury will consult with the life insurance industry before issuing a proposal on commissions next year.

Financial Planning Association Head of Professionalism Deen Sanders told insuranceNEWS.com.au the move was discussed at last week’s Treasury roundtable on the future of financial advice. 

insuranceNEWS.com.au understands about 20 organisations were represented at the roundtable, which was held in the Sydney offices of the Australian Securities and Investments Commission (ASIC).

These included both consumer and industry groups such as the Financial Services Council, National Insurance Brokers Association (NIBA) and the Association of Financial Advisers, as well as representatives from Treasury and ASIC.

Mr Sanders says intermediaries’ commissions were discussed “and we support the moves Treasury has made on the topic”.

“The obligations of remuneration models were discussed and we are happy about that.

“We were pleased Treasury is taking an approach to building long-term professionalism for financial planners and putting those foundations in law,” he said.

However, insuranceNEWS.com.au understands not every organisation has been supportive on the moves to ban commissions from July 2012.

Sources close to NIBA say the association has argued against banning commissions for insurance brokers.

insuranceNEWS.com.au understands the meetings will be held on a monthly basis until Christmas and most association members spoken to have been very supportive of Treasury’s moves.