The Federal Government has signalled its intention to give more force to the Financial Services Council’s (FSC’s) Life Insurance Code of Conduct by having it approved by the Australian Securities and Investments Commission (ASIC).
Government-backed ASIC approval of the Code of Conduct is important because it would have the effect of extending its obligations beyond members of the FSC.
The Government’s intentions were revealed by the Minister for Revenue and Financial Services, Kelly O’Dwyer, who welcomed the development of the Code of Conduct but made it clear that the Government wanted its coverage to be expanded and specifically mentioned group insurance arrangements within superannuation.
“The Government encourages the FSC and life insurance industry to continue to work on improving consumer outcomes in this vital sector of the financial system,” she said.
“Importantly, the Government expects that the FSC and industry will continue to work towards expanding the coverage and scope of the Code to more fully cover group insurance arrangements within superannuation, and will take the necessary steps to ensure that the Code is enforceable across the whole industry, by gaining ASIC approval of the Code.”
Importantly, the FSC last week helped forge a Statement of Intent with the major superannuation bodies, including the industry superannuation funds, around value of group insurance — something which was achieved in the context of its Life Insurance Code of Conduct.
