Life insurers implementing a licence under the Financial Services Reform Bill (FSRB) will have the assistance of a specialist conglomerate team.
Speaking to a room of industry professionals, Australian Securities and Investments Commission (ASIC) FSR licensing project head Pauline Vamos says the development of a conglomerate team currently underway in Sydney will assist groups with establishing licences under different structures.
“Under the streamlining certification, those in the insurance industry and who are APRA regulated can get a financial services licence to carry on with their role,” she says.
But for conglomerates who may not want a licence under the streamlined structure and will require a number of different licences under the new legislation, the conglomerate team will give assistance to these groups.
“The specialist conglomerate team will look at the situation for conglomerates and the structure for their licence,” Vamos says.
Main impacts of the FSRB concerning the life insurance industry also involve disclosure and product development, especially for those groups with financial planning divisions. It was also suggested that life insurance groups with a financial planning arm will be better placed than those who are purely insurance.
Distribution is another key element of the FSRB for the insurance industry, Vamos says, including channels and audits.
Once again Vamos stressed the timing of the FSRB, saying it was on track for an October 1 start date. She warned those who were not already looking at the transitioning phase would need to start immediately.
