Risk Product, Company and Regulatory Updates as at 19 November 2019
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Product Updates
World-first Indigenous digital educational tool launched for industry providers
First Nations Foundation (FNF) has launched the first-ever digital financial literacy program, My Money Dream. The program has been developed by Indigenous people for Indigenous people to help develop financial knowledge, and to offer the financial services industry a way to better engage with Indigenous customers and staff. The validated training program has been adapted from a decade of interactions by the foundation. Data shows that nine in 10 Indigenous people have no financial security.
Financial services providers can connect with their Indigenous members by buying My Money Dream licences and offering it as a way to build skills and trust.
Financial services providers can find out how to participate at the FNF website.
Midwinter launches real-time insurance comparator
Midwinter Financial Services has launched a comparison tool for insurance, with advisers able to review and compare features and pricing of insurance products in real-time. The tool uses Rice Warner’s Galaxy risk insurance engine.
TAL’s launches diabetes-specific product and mental health tool for super funds
People with diabetes have a new offering from TAL, a first of its kind in Australia, whereby TAL will offer premium reductions for customers who demonstrate they are actively managing their diabetes. The product belongs to the existing TAL Health Sense service that promotes healthy activities in customers. This is the first of many health-specific improvements TAL has in the making.
TAL has launched an online mental health program called BEACN. The tool was a combined effort between the University of Sydney Brain and Mind Centre and TAL’s innovation team. BEACN helps people to identify contributing risk factors to their mental wellness, offering specific recommendations to address these risk factors while supporting overall wellbeing. The purpose of the tool is to allow TAL’s superannuation fund partners with a tool to help members become more aware of their mental health while also minimising the impact of mental health problems.
Members fill out a questionnaire that gives them a current mental wellbeing score. UniSuper is one of the first to trial the service.
BT Life offering 25pc discount on BT Protection Plan lump sum policies
All eligible lump sum BT Protection Plan policies quoted from 28 October 2019 to 30 April 2020 will get a 25 per cent discount on the first year’s premium. The offer applies to standalone and linked policy types, but does not apply to level premium or combined stepped/hybrid policy combinations.
The discount applies in addition to any other available discounts and is automatically applied to eligible quotes through BT’s Life CENTRAL+ quoting software and premiums modelled in Iress Risk Researcher and other financial adviser planning software.
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Company Updates
Perpetual buys Melbourne risk advice practice
Risk advice practice Priority Life, working under the Medibroker dealer group, is being acquired by Perpetual. The business will continue to be run from its Toorak offices for two years, after which it will move to Perpetual’s offices. Staff will remain.
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Regulatory Updates
CommInsure pleads guilty to hawking
CommInsure pleaded guilty to 87 counts of offering to sell insurance products in the course of unlawful, unsolicited phone calls (hawking) which is a brach of the Corporations Act. At the time, CommInsure was owned by the Commonwealth Bank of Australia (CBA). CommInsure used telemarketing company Aegon Insights Australia to sell the policies over the phone after providing customer contact details. The customers had not consented to be contacted with marketing.
CountPlus closes Total Financial Solutions, buys DMG Financial Holdings
CountPlus is closing dealer group Total Financial Solutions (TFS). TFS has about 80 financial advisers with 62 asked to join Count Financial. Four advisers are leaving the industry, and eight (three TFS firms) have not been offered a place elsewhere in the business and are being assisted to move to another Australian financial services (AFS) licence.
CountPlus has acquired a 30 per cent stake in Gippsland-based advisory firm DMG Financial Holdings, taking CountPlus’ financial advisory network to 20 companies. CountPlus is to spend $2.9 million on the deal.
Last-minute FASEA Code of Ethics changes
The Financial Adviser Standards and Ethics Authority (FASEA) has changed the wording of its Code of Ethics. A controversial change is in Code Standard 3 regarding conflicts of interest. The change has come under fire from Phil Anderson of the Association of Financial Advisers (AFA), who says the changes are unworkable in their current form.
ASIC setting up adviser disciplinary body, exemption applied for compliance
The Australian Securities and Investments Commission (ASIC) has extended relief for the financial adviser compliance scheme obligations for not registering with an ASIC-approved compliance scheme by 1 January 2020. A three-year exemption has been applied to all AFS licensees to ensure all their advisers are covered by a compliance scheme and from associated notification obligations.
This notification comes after a Government announcement, whereby a single disciplinary body would be set up just for financial advisers. Applications would be withdrawn for ASIC approval of a compliance scheme. The single disciplinary body would displace the role of compliance schemes in monitoring and enforcing the Financial Planners and Advisers Code of Ethics 2019.
For more information see ASIC’s media release or the Code of Ethics on FASEA’s website.
