Do Trowbridge recommendations impact privacy?
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.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
