Complaints merger on hold
Any plans of a merger between the Life Insurance Complaints Service (LICS) and the Financial Services Complaints Resolution Scheme (FSCRS) have been scuttled, at least in the short term.
Any plans of a merger between the Life Insurance Complaints Service (LICS) and the Financial Services Complaints Resolution Scheme (FSCRS) have been scuttled, at least in the short term.
FSCRS manager Nicole Arendsen acknowledges that informal discussions between the two schemes took place earlier this year on the possibil-ity of a merger, however she says all plans have been put on hold for the time being.
"The door has been left open for future discussion. It would be fool-ish of us to close the door," she says.
Executive director of LICS, Paul Bean says that while FPA chief ex-ecutive officer Michael McKenna did broach the subject of a merger with him informally, the LICS board never followed up on the issue.
Both the FSCRS and LICS are competing for a similar membership base. Both groups will be vying for ASIC approval to accept memberships from single responsible entities under the Managed Investments Act.
In order to gain ASIC approval, both schemes will have to prove they are independent. The FSCRS is in the process of severing its ties with its parent, the FPA. LICS is also currently distancing itself from its parent, IFSA, though IFSA chief executive officer Lynn Ralph still sits on the LICS board.
LICS is understood to be in the process of changing its name. One alternative name, still to gain board approval, is the Financial Industries Complaint Services (FICS).
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