Risk Product, Company and Regulatory Updates as at 7 April 2020
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Product Updates
AMP Life product updates
AMP Life has made some changes to products, including:
No longer issuing Agreed Value contracts on new income protection policies
Implementing a $30,000 per month maximum for all new applications and policy increases, with this maximum applying across all income protection products insured by AMP Life, including group insurance and corporate super plans
Indexation that increases the benefit above $30,000 is allowed
Underwritten increases and increases due to the Future Insurability or Cover Boost features will only be allowed up to the new limit
Alterations are still allowed on existing agreed value contracts
Policies can be issued or re-issued after 31 March 2020 for administrative purposes
AMP Elevate is now only servicing existing customers, with changes to eligibility criteria, with only existing AMP Life customers able to apply for AMP Elevate
Elevate is no longer accepting applications from clients of MyNorth, North, Summit, ipac, iAccess and Generations, though AMP Life customers who have crossover can still apply
Medical definitions have been updated, with cancer, encephalitis, viral encephalitis and peripheral neuropathy undergoing modifications
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Company Updates
Count Financial adds firm
Count Financial is now the licensee for Queensland accounting advisory company, Affinitas Financial Planning. Affinitas Financial Planning is part of the broader Affinitas group, which provides a range of financial advice services. Affinitas Financial Planning has around 1400 clients, with 400 being investment or insurance clients.
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Regulatory Updates
FASEA approves historical and new degrees and bridging courses, RPL for FPA and CPA
The Financial Adviser Standards and Ethics Authority (FASEA) has approved further historical degrees and bridging courses, as well as new courses.
University of Canberra - historical Graduate Diploma in Financial Planning (commenced 1 January 2003 and 31 December 2005)
RMIT University - new Masters, Graduate Diploma and bridging courses - Masters of Financial Planning, Graduate Diploma of Financial Planning, with bridging courses approved - Professional Ethics, Financial Planning Regulatory Obligations and Behavioural Finance Advice
Additional applications for recognition of prior coursework for a professional designation have been approved, for the Financial Planning Association (FPA) and the Certified Practicing Accountants (CPA). Advisers who completed coursework to attain FPA designation for Life Risk Specialist between 2009 and 2018, or coursework to attain FPA for Accredited Estate Planning Strategist between 2010 and 2013 have been awarded 1 credit for Recognition of Prior Learning (RPL). Advisers who did the coursework for a CPA Associate designation between 1985 and 1988 have also been awarded 1 credit RPL.
The latest FASEA exam results have been published for February 2020 exams, with 2231 advisers sitting the exam across 17 areas. Over 82 per cent of advisers have passed.
APRA not issuing any new licences
The Australian Prudential Regulation Authority (APRA) has temporarily suspended issuing new licences for at least six months due to economic uncertainty relating to the pandemic.
