FSC counters ASIC and urges self-regulation on life/risk
The Financial Services Council (FSC) has urged a Parliamentary Committee not to push for further legislation in the life insurance industry in circumstances where self-regulation should suffice.
The FSC has lodged a new submission with the Parliamentary Joint Committee on Corporations and Financial Services claiming its Life Insurance Code of Practice has introduced standards high enough to obviate the need for more regulation or legislation.
In doing so, the FSC has countered a submission from the Australian Securities and Investments Commission (ASIC) seeking greater powers to deal with claims handling disputes in the life sector.
FSC chief executive, Sally Loane emphasised the direction of her organisations submission stating that "self-regulation can be implemented much faster than costly and time-consuming legislation".
"The Code has the capacity to evolve and change with consumer needs, and will deliver consumer benefits in a much more efficient and timely way than waiting for complex legislation," she said.
Loane claimed the life insurance industry had demonstrated it is committed to changes which benefit consumers via the Trowbridge processes and more recently the development of the code.
Further, she said ASIC had acknowledged that the code was likely to improve outcomes for consumers.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
