FSC releases life Code of Conduct
The Financial Services Council (FSC) has released its life insurance industry Code of Practice which will be governed by an independent body to ensure compliance.
Launching the Code today, FSC chief executive, Sally Loane said an independent report undertaken by Herbert Smith freehils showed the Code expanded the range of obligations imposed by other financial services codes and exceeded the standards imposed by existing law in many areas.
"In a number of areas it is ground breaking self-regulation," she said. "Life insurers have come together to develop the Life Insurance Code of Practice as a demonstration of just how serious we are about improving our industry standards for the benefit of all Australians."
Loane said the Code's consumer protections would be strengthened by an independent governance framework outside the FSC, via a Life Code Compliance Committee which will comprise of three independent experts including a consumer advocate.
She said the Committee would have the power to ensure insurers' compliance with the Code.
Where financial advisers are concerned, Loane said the Code's first iteration was as "a code for consumers".
"The relationship between insurers and financial advisers is an important but different one, and we are committed to working with the peak adviser organisations to address mutual obligations," she said..
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