LICG continues fight to stop LIF

The LICG has urged advisers, in an email, to write to Coalition and independent MPs and ask that the LIF reforms be paused until a wider life insurance inquiry is completed.

The LICG sent conveyed a similar message in an AIOFP letter last month, saying the new inquiry into the life insurance industry – to be conducted by the Parliamentary Joint Committee on Corporations and Financial Services – has the potential to “shed a different light” on the LIF debate.

The LICG said 500 letters have already been sent from its members.

“It is extremely important that we keep up the great work in stopping the proposed LIF reforms in its current form due to the detrimental impact on consumers, small business and the taxpayer,” its email said.

“The LICG has done the heavy lifting to publicly show the unacceptable flaws in the LIF legislation and now it is your turn to help right the many wrongs in the LIF Legislation.”

Last week, the AFA announced the results of its extraordinary general meeting EGM, which was held for members to vote on whether the association should withdraw its support for the LIF reforms.

Out of 842 votes, 620 (74 per cent) were against the association withdrawing its support for LIF, while 222 (26 per cent) were in favour. The EGM was initiated by the LICG, which wanted the AFA to start over in the LIF reform process.