The Australian Securities and Investments Commission's (ASIC's) concern at churning in the life/risk space is both baffling and concerning, according to Synchron director Don Trapnell.
Reacting to a statement by ASIC Commissioner Peter Kell to a Money Management/Financial Services Council (FSC) thought leadership breakfast, Trapnell said he believed there was no evidence to support Kell's contention that a culture of systematic churning exists among advisers.
He said that in an industry driven by statistics, compiling evidence of churning should be a relatively simple task but, to his knowledge, no life company had yet run the numbers.
Trapnell said that despite Synchron consistently calling for the statistical evidence, the FSC and the life insurance industry had not provided it.
