One of the most important recommendations contained in the Trowbridge Report is that the Australian Securities and Investments Commission (ASIC) use its regulatory powers to set licensing conditions.
While life/risk advisers and insurance company executives pointed to the broader recommendations contained in the Trowbridge Report, those who had been fully brief on the document pointed to the fact that it suggested that “ASIC be asked to endorse Policy Recommendations 1, 2 and 3 relating to adviser remuneration and licensee remuneration and, on the basis of that endorsement, to impose a suitable set of licensing conditions on life insurers that would give effect to these three recommendations”.
In his commentary contained within the report, Trowbridge noted that the recommendations could “be implemented only if most elements of the recommendations are the subject of some form of regulation, whether that is self-regulation or externally imposed regulation”.
“Regulation can take several forms. The Government can introduce legislation or regulations; or ASIC can impose conditions or requirements on insurers, licensees or advisers; or the ACCC can authorise activities or arrangements that might otherwise be deemed anti-competitive; or the industry can impose its own self-regulatory mechanisms,” the report said.
