Financial Service Council Took to Clean-up its Tainted Image in the Insurance Industry

Published Date : Apr 23, 2015

As revealed by Sally Laone, the new boss of the Financial Services Council, the industry of life insurance is all set to meet the six week deadline laid down by the federal government to respond concerns pertaining to the troubled insurance sector in Australia, and will provide answers expected from  the industry to clean its tainted image.

Ms Laone, who was also the former radio presenter for ABC, later took over the John Brogden in December said, it was one of her priorities to table an appropriate response as the new CEO of FSC, a body representing some of the biggest life insurers and fund managers of Australia. 

She said in an interview that she was very passionate about delivering workable and sustainable solutions for the life insurance industry. Her remark connoted the recently tabled Trowbridge report that contained 11 recommendations addressing conflicts in remuneration pattern and profit issues both in advice and life industries. 

The FSC partnered with the Association of Financial Advisers to form a working committee on life insurance on October 2014. John Trowbridge, the former member of the Australian Prudential Regulation Authority was appointed as the independent reviewer of the committee. 

Forming the committee was a part of the initiative taken in support of the collaborative industry as an answer to the derogatory report drafted by the corporate regulator that claimed a significant portion of the advice given by corporate planners were trashy and was motivated by lucrative commissions. It was revealed by the deputy commissioner of the Australian Securities and Investments Commission, Peter Kell that undercover surveillance revealed acute failure that should be considered by the body on notice.