FSC code of practice delayed

7 July 2016
| By Malavika |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 3 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago