Risk Product, Company and Regulatory Updates as at 20 March 2020

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Product Updates

ClearView makes changes to IP cover

  • Removal of agreed and guaranteed agreed value benefit types as of 12 March 2020

  • ‘Newly qualified professional’ feature not available for new business

  • Increases and reductions on existing agreed value and guaranteed agreed value policies will continue subject to underwriting

  • Existing agreed value policyholders are allowed to have their policy endorsed as guaranteed agreed value

  • Basic cover is being developed so as to be affordable and accessible to consumers

  • A new Indemnity 60 benefit type has been launched, with Indemnity 75 (currently just Indemnity) available

  • Introduction of the Indemnity 60 Income Support Benefit to help meet expenses associated with a claim

  • Applications during the transition period will be on paper

  • A new supplementary product disclosure statement has been released

TAL launches natural disaster mental health recovery course

TAL is launching a new course for advisers and their clients to rebuild after a natural disaster. The course is being offered via the Risk Academy. The course examines the mental health impacts of a natural disaster.

AIA no longer accepting business for some life risk products

After the integration with CommInsure Life, AIA is to stop accepting new business applications for some retail advised products. CommInsure Protection products are affected from 31 March 2020, with current policyholders still receiving full service. AIA Australia has made changes to its Priority Protection product with an involuntary unemployment benefit, which was a feature of CommInsure Protection products.

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Company Updates

Willis Towers Watson and Aon to merge

Aon and Willis Towers Watson have agreed to merge in an all-stock transaction with implied combined equity value of around $121 billion. While the companies are global, the transaction will include WTW’s local Australian business. The entities will merge under the Aon brand and focus on risk, retirement and health.

Spark Financial and Aura Wealth merge

Two boutique dealer groups have merged. Spark Financial Group and Aura Wealth Australia will use the Spark brand and service about 80 financial advisers. The joint venture will have about $650 million in funds under management. Arthur Kallos, Spark’s founder and chief executive, will head the new group. Andrew Coloretti, Aura Wealth’s executive director, will chair the board.

Freedom of Choice drops TAL as group insurer

TAL is no longer to provide group insurance for members of Freedom of Choice, an AMG Super offering. Hannover Life Re is taking over the mandate.

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Regulatory Updates

Westpac facing new class action

A fresh class action is being launched by Johnson Winter & Slattery lawyers on behalf of some shareholders who acquired Westpac securities or equity swap confirmations between 2013 and 2019. The claim is in relation to market disclosure issues in terms of Westpac’s financial crime monitoring, which is currently under AUSTRAC proceedings.

ASIC takes CFS to court

The Australian Securities and Investments Commission (ASIC) is taking Colonial First State to court with allegations of misleading communications with members. The action relates to member communication regarding the introduction of the default MySuper products. ASIC alleges CFS communicated to FirstChoice Fund members in a misleading manner, relating to transitioning to the MySuper product.

CFA postponing exams

The CFA Institute is delaying the June 2020 CFA exam as COVID-19 spreads. A new date has not been set. The Institute says that anyone who has registered should not withdraw.

FASEA exams go online

The Financial Adviser Standards and Ethics Authority (FASEA) April in-person exam has been cancelled, with the exam to go online after COVID-19 concerns.