Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Not all churn is bad, admits ASIC

compliance/"financial-planning"/

1 February 2017
| By Mike |
image
image image
expand image

The Australian Securities and Investments Commission (ASIC) has admitted that "churn" is not a breach of the law and may well be in the client's best interests.

Asking a question on notice from a Parliamentary Committee, ASIC revealed that it was receiving data from life insurance companies about churn by financial advisers that would enable it to monitor overall levels of churn in the life insurance advice industry.

However the regulator cautioned that "churn is not in itself a breach of the law because it may well be in the client's best interests to change life insurance policies".

ASIC said that, "therefore, data on churn is not a direct indicator of the level of compliance in the life insurance advice industry'.

It said that, at this point, ASIC was primarily using the data to identify advisers who might be providing non-compliant advice and should be subject to surveillance.

"Finally, we note as part of the Government's reforms to the remuneration arrangements in the life insurance advice industry, we will be conducting a review on the success of the reforms in 2021," ASIC said.

"In order to inform the review, we will collect data from life insurers periodically over the next few years. We have worked with APRA and industry to ensure we collect good quality, consistent, and useful data."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

6 days 7 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 2 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 2 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND