Risk Product, Company and Regulatory Updates as at 19 May 2020

Product Updates

AIA Australia launches Medix medical service

With global healthcare partner Medix, AIA Australia has launched Medix Personal Medical Case Management Service for Priority Protection policy customers. Claims relating to cancer, cardiovascular and musculoskeletal conditions, plus some mental health conditions such as anxiety and depression.

AIA Australia’s life and health insurance customers will have free access to the service, offering customers access to the Medix global network of in-house doctors and medical specialists.

Customers can engage Medix to act on their behalf, where a local team is appointed headed by a registered medical practitioner and a supporting nurse. After consultation with the global Medix network of specialists, a report of professional evaluations of diagnosis and appropriate treatment options is assembled.

The customer and their doctor can then decide on their preferred path. Customers are under no obligation to use the service or to accept any of the recommendations.

Company Updates

Bravura rolls out automated advice platform in NZ

Financial software company, Bravura, is set to launch an Australian digital advice system into the New Zealand market. The Midwinter digital financial planning suite has been adapted for the New Zealand market with increased demand expected after legislation changes. Bravura purchased Midwinter in 2019.

MLC launching new advice business, retires brands

MLC is launching a new advisory business to the market while retiring three brands. Apogee, Garvan and Meritum are to be merged (GWM Advisers Services), with TenFifty Financial Group being MLC’s new aligned financial adviser hub. All advisers linked with TenFifty will operate as representatives of GWM Adviser Services. Godfrey Pembroke, MLC Connect and NAB Financial Planning (soon to be MLC Advice) will remain. TenFifty is, according to MLC, the letters MLC in roman numerals.

CountPlus acquires Centenary Financial

CountPlus member company, CountPlus One, has purchased Centenary Financial. CountPlus One and Centenary are Count Financial member firms, with the new acquisition meaning clients and key employees of Centenary will transfer into CountPlus One. The acquisition was worth $200,000.

Regulatory Updates

FASEA extends exams for advisers, releases April exam results

The Financial Adviser Standards and Ethics Authority (FASEA) has announced an extension of Royal Commission recommendations regarding time limits applied to financial advisers to complete their exams. An amendment means that advisers have an extra year to pass the exam and meet their new education requirements, with the new deadline being 1 January 2022 instead of 1 January 2021. Advisers completing courses or degrees will have until 1 January 2026.

Exam results from the fifth Financial Advisers Exam have been released. The pandemic meant all exams were undertaken remotely, with just 470 advisers sitting the exam, compared with 2,231 in February. Seventy-nine per cent passed the exam. Over 2,000 advisers are registered for the June exam, to be held from 11-16 June. August registrations are also open.

Tailormade Financial Strategies has AFSL cancelled

New South Wales-based Tailormade Financial Strategies has had its Australian Financial Services (ASF) licence cancelled by the Australian Securities and Investments Commission (ASIC). ASIC cancelled the ASF licence after Tailormade went into liquidation.

Ausfunds Management AFS licence returned

ASIC has revoked the suspension of the AFS licence of Sydney-based responsible entity Ausfunds Management. ASIC reported that Ausfund had breached its licence by failing to maintain sufficient financial resources. Ausfunds, in response to the suspension, raised sufficient funds and thus the suspension was removed.

Royal commission measures deferred for six months

The federal government is deferring the implementation of measures relating to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry due to the COVID-19 crisis. Treasurer Josh Frydenberg said measures expected to be introduced into parliament in June/July will now be introduced in December, with measures scheduled for December now to be delayed until June 2021. The deferral is to allow organisations to deal with more immediate problems in ensuring customers and staff are cared for.