The National Australia Bank (NAB) has told a Senate Committee that it will not oppose the Life Insurance Code of Practice becoming registered with the Australian Securities and Investments Commission (ASIC) and therefore legally enforceable.
However NAB chief customer officer, consumer and wealth, Andrew Hagger has told the Parliamentary Joint Committee on Corporations and Financial Services that he believes registration of the code with ASIC should not occur before it also covers superannuation funds.
“This is a several-step process,” he said. “Step No. 1 was to establish the code. That is what has happened so far. You are talking about the next step, which is to make it an enforceable code of conduct.”
Hagger said the next step was to bring in the parties not subject to the code, particularly the superannuation industry.
“Once that occurs, the industry is in a situation where it may be the right thing to do, to take that next step to be an enforceable code,” he said.
Asked specifically whether NAB and MLC supported the code being registered with ASIC, Hagger said they did, once the whole industry was across the line.
“If ASIC wants to register it [the code] and the various things that go along with that, then it will be a natural step when the moment comes.” he said.