ASIC probing direct life call centres

ASIC/insurance/financial-planning/policy/

25 August 2017
| By Mike |
image
image
expand image

Insurance company call centre staff involved in selling direct life insurance are being closely scrutinised by the Australian Securities and Investments Commission (ASIC) to determine whether their activities is extending beyond the provision of general advice.

The regulator as told a public hearing of the Parliamentary Joint Committee on Corporations and Financial Services that ASIC is closely examining direct life insurance sales in the context of whether those involved are over-stepping the boundary between general advice and the delivery of personal advice.

ASIC senior executive, Michael Sadaat revealed the dimensions of the ASIC scrutiny when he said the regulator was “reviewing several hundred call recordings that involve the sale of direct life insurance to consumers”.

“We're looking at a number of things as part of those call recordings, but one of them is also to understand whether call centre staff that are engaged in the sale of direct life insurance might be going beyond the limits of general advice and straying into personal advice as part of those conversations,” Sadaat said.

He said the exercise was currently underway and would be part of what ASIC reported on when it brought down its findings next year.

The Parliamentary Committee had earlier been told by ASIC deputy chair, Peter Kell told the committee that ASIC wanted to make sure that it was not witnessing the emergence of models involving quite complex products being offered under the heading of general advice to “almost avoid the personal advice obligations and protections”.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND