{"id":19823,"date":"2013-03-13T08:21:16","date_gmt":"2013-03-12T22:21:16","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=19823"},"modified":"2013-03-13T08:34:30","modified_gmt":"2013-03-12T22:34:30","slug":"asic-decision-to-move-on-churning-baffling","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2013\/03\/13\/asic-decision-to-move-on-churning-baffling\/","title":{"rendered":"ASIC Churning Decision \u2018Baffling\u2019"},"content":{"rendered":"<p>Recent comments made\u00a0by the Australian Securities and Investments Commission indicating that it may pursue action to address churning have been labelled \u2018baffling\u2019 by Synchron\u2019s <strong>Don Trapnell<\/strong>.<\/p>\n<p><!--more--><\/p>\n<figure id=\"attachment_19825\" aria-describedby=\"caption-attachment-19825\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2013\/03\/Don-Trapnell-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-19825\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2013\/03\/Don-Trapnell-2.jpg\" alt=\"Don Trapnell\" width=\"150\" height=\"180\" \/><\/a><figcaption id=\"caption-attachment-19825\" class=\"wp-caption-text\">Don Trapnell<\/figcaption><\/figure>\n<p>Responding to statements made by ASIC Commissioner <strong>Peter Kell<\/strong> at an industry function this week, which indicated he felt the practice of churning was widespread and needed to be addressed, Mr Trapnell said there did not appear to be any statistical evidence to support this argument.<\/p>\n<p>\u201cOne of the reasons Synchron was so opposed to the introduction of a Financial Services Council (FSC) churning policy was that we believed there was no evidence to support that a culture of systemic churning exists amongst advisers.<\/p>\n<p>\u201cWe are obviously very concerned that ASIC believes churning is a problem and also a little bit baffled,\u201d Mr Trapnell said.<\/p>\n<h6>We are obviously very concerned that ASIC believes churning is a problem and also a little bit baffled<\/h6>\n<p>An outspoken opponent of the FSC\u2019s life insurance replacement business framework (which was <a href=\"https:\/\/riskinfo.com.au\/news\/2013\/02\/25\/fsc-backdown-the-calm-before-the-churning-storm\/\">abandoned by the Council<\/a> earlier this year), Mr Trapnell said in an industry driven by statistics, compiling evidence of churning should be a relatively simple task and yet, to his knowledge, no life company has yet run the numbers.<\/p>\n<p>\u201cIn September last year I attended an industry forum at which FSC Chief Executive, <strong>John Brogden<\/strong>, apologised to advisers for calling them churners and acknowledged there was no evidence to support that a culture of churning exists,\u201d Mr Trapnell said. \u201cIf the FSC or the industry has since provided the evidence to ASIC, advisers need to see it.\u201d<\/p>\n<p>In a statement to riskinfo last month, an ASIC spokesperson said the regulator was \u201c\u2026 considering issues raised by recent developments with industry initiatives around churn and the implications for dealing with it.\u201d Industry stakeholders have responded to the latest comments from the regulator by saying it now appears ASIC is has its attention firmly focused on the issue.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recent comments made\u00a0by the Australian Securities and Investments Commission indicating that it may pursue action to address churning have been labelled \u2018baffling\u2019 by Synchron\u2019s Don Trapnell.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,6,270],"tags":[],"class_list":{"0":"post-19823","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-associations","7":"category-compliance-regulation","8":"category-dealer-groups","9":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/19823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=19823"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/19823\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=19823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=19823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=19823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}