Complaints merger on hold
Any plans of a merger between the Life Insurance Complaints Service (LICS) and the Financial Services Complaints Resolution Scheme (FSCRS) have been scuttled, at least in the short term.
FSCRS manager Nicole Arendsen acknowledges that informal discussions between the two schemes took place earlier this year on the possibility of a merger, however she says all plans have been put on hold for the time being.
"The door has been left open for future discussion. It would be foolish of us to close the door," she says.
Executive director of LICS, Paul Bean says that while FPA chief executive officer Michael McKenna did broach the subject of a merger with him informally, the LICS board never followed up on the issue.
Both the FSCRS and LICS are competing for a similar membership base. Both groups will be vying for ASIC approval to accept memberships from single responsible entities under the Managed Investments Act.
In order to gain ASIC approval, both schemes will have to prove they are independent. The FSCRS is in the process of severing its ties with its parent, the FPA. LICS is also currently distancing itself from its parent, IFSA, though IFSA chief executive officer Lynn Ralph still sits on the LICS board.
LICS is understood to be in the process of changing its name. One alternative name, still to gain board approval, is the Financial Industries Complaint Services (FICS).
Recommended for you
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
Lower fees and trustworthiness are the top factors enticing unadvised Australians to seek a financial adviser, according to Fidelity International, common across all generations.
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
