POWERED BY MOMENTUM MEDIA
FSC life insurance 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 a 12-month period for insurers transition to the code by 1 July, 2017, that 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 $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TAL has launched a digital solution TAL Connect for its superannuation fund partners that links super and insurance for members, with Aware Super as its launch partner.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment