INSURANCE UPDATE (AUSTRALIA)
This update is intended as a general overview, targeted
specifically at claims officers and underwriters of insurers of
professionals required to comply with the Future of Financial
Advice (FOFA) reforms.
WHAT IS IT?
The Australian Securities and Investments Commission (ASIC) has
now increased powers to protect the public and reinforce the
integrity and reputation of the financial services industry due to
the FOFA reforms.
Prior to implementation of FOFA, a number of factors were
impacting on the ability of ASIC to exercise its powers including
decisions of the Administrative Appeals Tribunal (AAT) relating to
when someone "will" breach the law, the difficulty with
removing individuals (given that the existing legislation focused
upon licensees) and the lack of scope for ASIC to remove
representatives in certain circumstances, such as where they were
not of good fame and character.
