This week, planners have heard from some senior figures at the AFA National Conference.
On Tuesday, ASIC deputy commissioner Peter Kell explained ASIC’s intent to start a surveillance of the life insurance industry.
“That’s a project that is now underway and our focus will be personal advice in relation to retail life policies… We have served notices on various insurers whose products are being distributed through personal clients, to gather information at this stage…” Kell said.
Peter Corrie is not impressed with the news, and has expressed his concerns in this week’s comment of the week:
“Shadow Shopping and Surveillance is a disgraceful activity by ASIC, not only that it is deceitful and underhand but it undermines our whole industry and creates mistrust amongst consumers. It is the sort of thing you would expect in Russia not in a free enterprise democratic country.
The churn issue is not the function of a bureaucracy like ASIC, it is instead and always has been a Life Insurance company management problem. ASIC will have wasted an enormous amount of time and our time for little result.
ASIC instead should be concentrating on convicting corporate and individual criminals not interfering in the marketplace and chasing paper trails.
The ironic and interesting part of all this is that the Lawyers and Bureaucrats at ASIC would not survive as Financial advisers and their knowledge of appropriate advice is only based on theories.
THE Labor party started all these practices so we need political pressure on the Liberal party to stop this activity once and for all otherwise we will be subjected to more and more unjustified interference. The only alternative for the industry or advisers is to take Legal action.
Next sunday I will be asking the question of Bronwyn Bishop my Federal Member what the Liberal party can do to stop these harmful ASIC activities.”
Good to see planners getting out there and taking some action. Keep up the good work and be sure to let us know what you’re up to so you can be in for next week’s comment of the week.