Risk Regulatory Updates

FSC updates code fo practice for life insurance industry

The Financial Services Council has published its updated code of practice for the risk industry, which restricts insurer use of surveillance while introducing more enforcement powers for code breaches. Consultation has been ongoing for two years, with key reforms making the code enforceable by the Australian Securities and Investments Commission (ASIC). The code will be broadened to include third-party distributors, with new protections for claimants. Clear obligations for insurers will be set for communications with policyholders.

FPA announces new designation

The Financial Planning Association of Australia (FPA) has launched a new designation, the FPA Aged Care Specialist. Aged care is an emerging specialist area of financial planning, requiring special training and skills. Advisers wishing to become an aged-care specialist can complete Aged Care Steps accredited aged care professional training, and apply to the FPA for recognition. Nine continuing professional development hours must be achieved each year for successful applicants. FPA members who completed the program prior to 1 January 2019 must complete a refresher workshop and assessment.

APRA: Data confidentiality consultation period resumes for insurers

The Australian Prudential Regulation Authority (APRA) is resuming the consultation period for a proposal to determine business data into classes for general and life insurance as non-confidential. The consultation was paused in March. The new consultation period will last four weeks, with submissions closing on December 3 2020.