FSC describes Trowbridge as 'gold standard'
The Financial Services Council (FSC) regards the Trowbridge Review and consequent Life Insurance Framework (LIF) as the “gold standard” in industry self-regulation.
The FSC’s senior policy manager for superannuation, Blake Briggs has used a column in the upcoming edition of Money Management’s sister publication, Super Review, to argue the case for self-regulation in the pursuit of consumer confidence in the face of unprecedented public and political scrutiny.
At the same time, FSC chief executive, Sally Loane has used her opening address to a Parliamentary Committee to push the case for self-regulation, arguing that given the current regulatory settings, further regulatory changes should be unnecessary.
“The FSC strongly believes further regulation would be unnecessary. Self-regulation is an efficient way to bring about pro-consumer changes in the sector.”
“Policymakers must be careful to balance the sustainability, accessibility and affordability of the life insurance so that consumers can continue to access the cover they need both now and into the future,” she said.
For his part, Briggs said: “The FSC-initiated Trowbridge Review of Retail Life Insurance is the gold standard of industry self-review and regulation”.
He said deep disagreement within the industry around the sustainability of past practices and remuneration structures [had] required an independent review.
“Some of the Trowbridge recommendations were difficult for the industry to accept, but this shows the integrity of the process and the independence of John Trowbridge himself,” Briggs writes in Super Review.
“The FSC's implementation of the Trowbridge recommendations has established Australia's first Life Insurance Code of Practice. It also formed the basis for the recent legislative reform of commissions in the financial advice industry, which had bi-partisan political support and the backing of consumer groups.”
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