- Last Call for FoFA Submissions
- Slow Growth in Insurance Market
- APRA Guidelines Released
Last Call for FoFA Submissions
This Friday, 16 September, marks the closing date for submissions to Treasury on the first tranche of its Future of Financial Advice (FoFA) reforms.
On 29 August the Minister for Financial Services and Superannuation, Bill Shorten, released an exposure draft which provides the legislative detail around key FoFA measures, including the statutory best interests duty, compulsory renewal requirement (opt-in), and the enhancement of ASIC’s powers.
The public is invited to submit comment on the exposure draft and related material through either electronic lodgement or regular post.
Advisers and others can click here to view a copy of the exposure draft or to lodge a submission.
Slow Growth in Insurance Market
Growth in individual risk sales has slowed in the twelve months to June 2011, according to a report issued by DEXX&R.
The June 2011 Life Analyis Report found that individual lump sum risk new business increased by just 3.5% this year, compared with the peak growth rate of 21.5% recorded over the twelve months to June 2009.
Similarly, new annual premium for individual disability products increased by 8.2% this year, against a peak of 22.1% in 2009.
The greatest drop was felt in the area of total group risk new business, which decreased by 15.6% in the year ending June 2011.
APRA Guidelines Released
APRA has released consolidated prudential standards which will apply to authorised deposit-taking institutions (ADIs), general insurers and life companies.
Once effective, the twelve prudential standards currently applying to regulated institutions within these industries will be reduced to just four.
The four amalgamated prudential standards cover governance, fitness and propriety, outsourcing and business continuity management.
APRA says it received a number of submissions on the consultation package from regulated institutions and industry groups, which were largely supportive of the initiative to harmonise requirements across the regulated industries.
