The deputy chairman also revealed ASIC is in the process of assigning more staff to its financial advice team in a bid to beef up its powers to discipline and prosecute the alarmingly high incidence of financial advisers who, motivated by hefty upfront commissions, are providing inappropriate advice to sell life insurance products that are not in their clients’ best interests.
Sweeping changes have been pledged for the life insurance industry to protect more than 1 million policyholders in the wake of a damning report that found one in three advisers focused more on winning commissions than serving their clients.
The Future of Financial Advice reforms that banned commissions throughout the bulk of the industry did not extend to individual life insurance sales.
The report, released by the corporate watchdog on Thursday, showed nearly 40 per cent of financial advisers it surveyed failed to comply with the law when selling life insurance products.
Read more here: SMH