FSC abandons churning policy
The Financial Services Council (FSC) will not go ahead with its application to the Australian Competition and Consumer Commission (ACCC) to have its insurance churning policy approved.
FSC chief executive John Brogden has conceded that his organisation no longer has "unanimity" on its approach.
"The Financial Services Council has been working with our life company members for some time on a replacement business policy in response to the Minister Shorten's statement on 29 August 2011 calling for reform," said Brogden.
"The FSC has consulted with a range of industry bodies, regulators, consumer groups and the Government and at the end of last year the FSC board determined to proceed with an application to the ACCC to approve the proposed FSC framework," he said
"The proposed framework raised a complex set of factual, legal and economic issues from a competition perspective which meant that it would have required regulatory approval in order to be implemented. There was no guarantee that such approval would be obtained," said Brogden.
Brogden said the FSC remained "committed to ensuring a sustainable life insurance sector which will deliver outcomes for the community and the industry participants".
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