Category Archive: Industry

ASIC focuses in on IDR processes

ASIC has released research exploring the customer experience of internal dispute resolution (IDR) procedures in the financial services sector. Financial services licensees have specific obligations around maintaining an IDR procedure.

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Life Insurance Code 2.0

The Financial Services Council has released a draft of the new Life Insurance Code of Practice (Code) for public consultation. This follows scrutiny of the industry, including sales and claims practices, during the round 6 hearings at the Financial Services Royal Commission. The draft Code builds on the existing code and is designed to lift …

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ASIC proposes updates to organisational competence requirements for advice licensees

ASIC has proposed updates to Regulatory Guide 105 Licensing: Organisational competence (RG 105) that would see advice licensees required to have a responsible manager (RM) that meets a new Option 6 knowledge and skills requirement. Consultation Paper 305, released yesterday by ASIC, includes updates designed to support the professional standards reforms, which aim to lift …

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New mandatory reporting requirements on life insurance claims

The Australian Prudential Regulation Authority (APRA) has released the Life Insurance Reporting Standard LRS 750 Claims and Disputes with the aim of enhancing the consistency and quality of life insurance data. The data will be published through a program established jointly last year by APRA and the Australian Securities and Investments Commission (ASIC). With the …

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ASIC corporate plan – what’s on the horizon for insurance

ASIC has published its Corporate Plan for 2018-2022. The plan articulates the regulatory actions ASIC proposes to take over 2018-2019.

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ASIC reviews insurance cover through superannuation

Following the release of its report into direct life insurance (see our blog entry on that here), ASIC has also released a report on the provision of insurance cover through superannuation (Report 591). Generally, superannuation funds offer their members one or more types of life insurance (such as life cover, TPD cover and income protection …

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ASIC’s review of direct life insurance – the results are in

Late last week, ASIC released Report 587 on the sale of direct life insurance, revealing that its has found that sales practices and product design are leading to poor consumer outcomes. Direct life insurance products are sold within a general advice or no advice model. Throughout 2017-18 ASIC has conducted a multi-stage review of the …

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New EDR scheme established for financial services complaints

The Government has passed legislation which introduces a new external dispute resolution (EDR) scheme, known as the Australian Financial Complaints Authority (AFCA), to resolve disputes relating to financial services complaints. The establishment of AFCA means there will be a single scheme for all financial services and superannuation complaints. Currently there are three separate schemes: the …

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Draft legislation proposes design and distribution obligations for financial products

Late last year, the Government released an exposure draft of the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2017 (Bill). The Bill seeks to introduce: design and distribution obligations for financial products to ensure such products are targeted at the right people; and a temporary product intervention power for ASIC …

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ASIC review into direct life insurance results in customer refunds

ASIC has announced that ClearView Life Assurance Limited (Clearview) will refund 16,000 customers a total of approximately $1.5 million. This follows an ASIC review of Clearview’s life insurance sales practices. The review focused on sales to consumers residing in high Indigenous populated areas who were unlikely to have English as their first language. The sales …

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