ASIC has updated Regulatory Guide 246 Conflicted and other banned remuneration (RG 246), previously titled Conflicted remuneration, to include guidance on the operation of the incoming life insurance remuneration reforms and additional working examples.
The life insurance remuneration reforms, which commence on 1 January 2018, mean remuneration arrangements used in some life insurance distribution channels, including direct sales, will need to change.
Commissions will be subject to commission caps and clawback arrangements as summarised in Appendix 2.
