FSC code of practice delayed
The Financial Services Council's (FSC) new Life Insurance Code of Practice is facing delays from its original deadline of 1 July 2016, and will now commence in October.
The FSC said that while the original timetable allowed the 12-month period up to 1 July 2017 open for insurers to transition to the code, the transition period would now be reduced so all insurers would still be compliant with the code standards by 1 July, 2017.
The group also said it decided it would require the additional three months following consultation with stakeholders including consumer groups.
"After consulting with consumer groups, the FSC has identified areas where the code's standards could be further developed — in particular, focusing on sales practices and claims handling," it said.
The FSC announced key changes to the code of practice in March following allegations levelled at CommInsure. Chief executive, Sally Loane, acknowledged the criticism that the life insurance industry could not self-regulate.
The Australian Securities and Investments Commission (ASIC) deputy chair, Peter Kell, told the Life Insurance conference that there was a life insurance code previously but it failed due to lack of commitment underpinning it. He said it was vital to get appropriate consultation.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.