The Federal Government has ramped up pressure on the Financial Services Council (FSC) to ensure its Life Insurance Code of Conduct is enforceable.
The Assistant Treasurer, Stuart Robert has used an address to the FSC Life Insurance Conference to declare the Government’s expectation that the FSC will seek Australian Securities and Investments Commission (ASIC) approval of the code.
“In due course, we expect the FSC will work co-operatively with ASIC to have the terms that govern the contract made between the insurer and the policyholder designated as 'enforceable code provisions',” he said.
Robert said the Government imagined this would occur as soon as practicable after it passed legislation providing ASIC with the necessary powers.
Elsewhere in his address to the conference, Robert signalled there would be no backing down from its approach to insurance inside superannuation, particularly with respect to those aged under 25 and those with account balances of less than $6,000.
However, a question mark remains over whether the Government will have time to navigate the necessary legislation – the Putting Members’ Interests First Bill – through the Parliament before it is dissolved ahead of the May Federal Election.