Connect with us

Hi, what are you looking for?

Loan And Finance

Synchron against advisers funding planned compensation scheme – Life Insurance – Insurance News

Synchron against advisers funding planned compensation scheme

22 November 2021

Synchron says the advice sector should not have to pay a “single dollar” to fund the proposed Compensation Scheme of Last Resort.

Treasury closed consultation in August on the planned scheme, a recommendation made by the Hayne royal commission into financial services misconduct.

Synchron Director Don Trapnell says only 1.4% of disputes lodged in the last financial year with the Australian Financial Complaints Authority (AFCA) involved the advice sector.

“Of those, only 0.03% were not settled, and yet the advice sector is expected to fund the lion’s share of the [scheme],” he said. “It beggars belief.”

He says Treasury’s consultation paper shows the financial advice sector will be required to pay more than 76% of the estimated levies for the scheme.

Advertisement. Scroll to continue reading.

An urgent rethink of the way the scheme is funded is necessary, Mr Trapnell said.

“The Government must stop making scapegoats out of the advice community, which is clearly not responsible for product failures and not responsible for the vast majority of AFCA complaints,” he said.

Adviser peak bodies including the Financial Planning Association (FPA)and Association of Financial Advisers (AFA) have previously voiced reservations about the design of the scheme.

Last month FPA and AFA joined forces with consumer advocates to push for a “stronger” scheme, saying the planned model as set out in the Treasury consultation fails to cover every financial offering.

They say in a joint statement the proposed legislation for the scheme should be expanded to provide monetary redress for all products and services that fall under the jurisdiction of AFCA.

The statement says the draft bill will exclude vast segments of the financial industry, including managed investment schemes and the funeral expenses industry, leaving many victims of financial misconduct without redress.

It will also mean that a number of large financial institutions including product providers are not required to contribute to the costs of compensation.

Advertisement. Scroll to continue reading.

Source link

Click to comment

Leave a Reply




Source: Joseph Keller / iMore Apple is reportedly testing a feature that will allow people to receive card payments right on their iPhones in...


Did you miss a session from the Future of Work Summit? Head over to our Future of Work Summit on-demand library to stream. Stonly,...

Loan And Finance

Allianz Global Investors (AllianzGI) has set up a new unit focused on impact investing in private markets in an effort to create...


Apple TV+ has reportedly picked up Cooper Raiff’s Cha Cha Real Smooth after winning a “competitive bidding situation” that involved some of Hollywood’s biggest...


When CEO Mark Zuckerberg changed Facebook’s name to Meta and committed to the metaverse, he said that gaming would lead the way. That’s an...

Top Stories

Virtual world project The Sandbox announced its metaverse accelerator program that will push the development of the open metaverse by investing $50 million in...

Online Business Success

In a global economy where data is now widely regarded as having replaced oil as the material that powers growth, the ability to analyse...


Source: Rebecca Spear / iMore Best answer: Yep. If you own the physical or digital copy of a Nintendo Switch game, the game save...


You May Also Like

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

SEO Guide

How to index website on Google? Do you want to drive more organic traffic to your new website? I am sure your answer is...


In this post, I will discuss the top ten profitable blogging niches ideas for Adsense approval and high traffic. whether you use Blogger or...

SEO Guide

Want to rank in Google image search? Images that you use as a featured images when writing a post actually appear on Google Images...