Regulation of the life insurance industry

Regulation of the life insurance industry

1. History of insurance regulation

   • Federation and first regulatory framework in 1945
   • Changes in the 1960s and 1970s
     • Mutual life offices
     • Deposit administration policies
     • General insurance
   • Changes in the late in1970s, and 1980s
   • Beyond 2000

2. Insurance industry legislation and regulation

   • Insurance Contracts Act 1984
     • Utmost good faith
     • Insurable interst
     • The insured's duty of disclosure
     • The effect of non-disclosure
     • Policy cancellations
     • Policy renewals
     • Review of the Insurance Contracts Act 1984
   • Life Insurance Act 1995
   • Insurance Act 1973
   • Corporations Act 2001
     • False or misleading statements
     • Misleading or deceptive conduct
     • Fraudulent inducements to deal
     • Unconscionable conduct
     • Duty of care
     • Conflict of interest
     • Disclosure
     • Training
   • Other Legislation
     • ASIC and APRA
     • Income Tax Assessment Act 1997
     • Anti-Money Laundering and Counter-Terrorism Financing Act 2006
     • Electronic Transactions Act 1999
     • Competition and Consumer Act 2010
     • Privacy Obligations - Privacy Act 1998
       • Transition from National to Australian Privacy Principles
       • National Privacy Principles (effective prior to 2014)
       • Australian Privacy Principles (effective from 2014)
     • Disability Discrimination Act 1992
     • Financial services reform regime
     • Future of financial advice
       • Best interests duty
       • Scaled advice
       • Fee disclosure statements
       • Codes
       • Conflicted remuneration
       • Exemptions for insurance advice
     • ASIC Report 413: Review of retail life insurance advice
     • Taxation advice

3. Financial advice and the law

   • What are financial services?
   • What is financial product advice?
     • Personal versus general advice versus factual information
       • Warning required when general advice is given
       • Further guidance by ASIC on general advice versus personal advice
       • Factual information
   • Licensees, representatives and authorised representatives
     • Responsibilities of licensees
     • Representatives
     • Authorised representatives
       • Banning of representatives
       • Training and competency requirements for licensees and representatives

4. Regulation of adviser conduct and disclosure

   • When giving personal advice
   • When giving general advice
   • Safe harbour in provision of advice
   • Providing appropriate advice
   • Advice record-keeping obligations
   • Failure to comply

5. Financial advice and the client

   • Stage 1 - Point of first contact with a client
   • Stage 2 - When personal advice is provided
     • Client warnings
     • General advice
     • Statement of advice
     • Disclosures of remuneration, commission and other benefits
       • Exemptions to benefits disclosure
     • Record of advice
   • Stage 3 - Implementation of product recommendations
     • Product Disclosure Statement

6. Consumer protection

   • Regulatry bodies
     • The Australian Competition and Consumer Commission (ACCC)
     • The Australian Securities and Investments Commission (ASIC)
     • The National Competition Council (NCC)
   • Hawking