Risk Regulatory Update
/Regulatory Updates
Super Consumers Australia says strict TPD definitions should go for good
The Financial Services Council (FSC) recently committed to risk insurance policyholders of total and permanent disability (TPD) cover that claims would not be denied for any claimants who had lost their job. Super Consumers Australia (SCA) said in a statement that this is proof that the activities of daily living definitions in TPD are too strict and should be removed, permanently. FSC said that claims would be based on a person’s employment arrangements prior to the pandemic declaration, which SCA says is proof ‘that TPD cover is inappropriate for unemployed people and people working limited hours’.
‘Restrictive tests have no place in TPD insurance, whether during a pandemic or not,’ the statement says, with SCA saying funds and insurers should ban these ‘junk terms once and for all’.
FPA says AFSL system should be replaced with individual registrations
The AFS licencing system in Australia for financial planners is under attack by the Financial Planning Association (FPA), which wants a new system of individual registrations through a single disciplinary body. The FPA’s chief executive Dante De Gori said that recent reforms meant regulation of advisers was now being done at an individual practitioner level, and registration should reflect that. De Gori said the AFSL system should still be used for financial products and some services, but that financial advisers should be on a separate system.
Not everyone is pleased, however, with Fortnum, Centrepoint, Easton Wealth, CountPlus, Fitzpatricks and Paragem all criticising the FPA in a joint statement. The dealer group leaders say the AFS licencing system is an efficient way to deal with the inbuilt costs of offering compliant financial advice.
FASEA approves historical coursework
The Financial Adviser Standards and Ethics Authority (FASEA) has recognised previous coursework from the University of Adelaide’s Graduate Diploma in Global Wealth Management. Advisers who completed coursework between 1 January 2006 and 31 December 2011 are only required to complete the FASEA Ethics for Professional Advisers bridging course to meet the new requirements.
