The final recommendations of the Trowbridge Report may give rise to privacy issues if they are implemented, according to Brisbane-based adviser, Philip Burke.
Burke has used an Association of Financial Advisers (AFA) discussion forum to point to the proposed workings of the Initial Adviser Payment (IAP) and to suggest that they will require the existence of a central data base.
“How else could it handle a situation of say trauma, life and income protection contracts done at different times and different insurers?” he asks.
Burke then suggests this would give rise to significant privacy issues with insurers needing to have access along with the Australian Securities and Investments Commission (ASIC), the Australian Taxation Office (ATO), Centrelink, Austrac and other agencies.
“Do you want your clients on such a register?” he asks and suggests that clients be alerted to such consequences flowing from the Trowbridge recommendations being adopted.
