Risk Product, Company and Regulatory Updates as at 2 June 2020

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Company Updates

Centrepoint Alliance buys Chant West’s Enzumo

Chant West’s financial planning software company, Enzumo, is being purchased by Centrepoint Alliance. Enzumo creates financial planning software consulting, customisations, workflow and electronic educational management resources to the financial advice industry.

Sequoia buys Phillip Capital Limited customers

Sequoia Wealth Management is buying the customer and adviser base of Phillip Capital Limited. The deal includes 23 advisers and $1 billion in funds under management. Advisers will be authorised under Sequoia’s Australian financial services licence from July 2020.

Regulatory Updates

AFCA receiving high number of lockdown complaints

The Australian Financial Complaints Authority (AFCA) has received over 3,000 COVID-19-related financial complaints over the past few months, with over 600 related to superannuation funds. The complaints can be broken down into:

  • 1,430 banking and finance complaints

  • 1,070 general insurance complaints

  • 610 superannuation complaints

Most complaints are in relation to:

  • Early release of superannuation funds

  • Loan break costs

  • Disputed transactions

  • Requests to extend payment terms

  • Denial of travel insurance claims

Economics Committee hearings on 3 June regarding code breaches

Insurers, the Insurance Council of Australia and the General Insurance Code Governance Committee will face the House of Representatives Standing Committee on Economics on 3 June 2020 as part of the Review of the Four Major Banks and Other Financial Institutions. The hearings are to deal with recent alleged code breaches and complaints during the pandemic.