The Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 has lapsed. The Bill lapsed on 17 April 2016 as it did not reach royal assent before the session of Parliament was terminated. The Bill was designed to limit the circumstances in which the conflict remuneration exemption on life insurance applies to retail life insurance products. If the Bill had been passed, the exception to the ban on conflicted remuneration would only have applied if the benefit was a level commission or the benefit satisfied the benefit ratio requirements and clawback requirements under the Bill. You can see our previous blog posts regarding the Bill here and here. The Bill was due to take effect on 1 July this year.
A spokesperson for the Assistant Treasurer Kelly O’Dwyer has said that the Bill could be reintroduced in the future. The spokesperson suggested it was possible the Bill would be reintroduced before July as long as the Senate keeps sitting up until any time before the election is called. The Prime Minister is expected to officially call the election after the 3 May budget. If the Bill is not reintroduced before this date then it is likely to be months before the Bill is reintroduced to Parliament, with the election tipped for 2 July. Whether it is reintroduced in its current form will be a matter of ‘wait and see’.