{"id":37622,"date":"2017-07-04T18:55:55","date_gmt":"2017-07-04T08:55:55","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=37622"},"modified":"2025-09-02T11:33:59","modified_gmt":"2025-09-02T01:33:59","slug":"asic-tells-pjc-insurers-were-aware-of-churn","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/07\/04\/asic-tells-pjc-insurers-were-aware-of-churn\/","title":{"rendered":"ASIC Claims Some Insurers Were Aware of Churning"},"content":{"rendered":"

ASIC has admitted that some life insurance companies are aware of which advisers have been churning despite the latter not taking any action on the matter.<\/p>\n

\"Federal<\/a>
Federal member for the Queensland seat of Forde, Bert Van Manen<\/figcaption><\/figure>\n

The admission was made by ASIC Deputy Chair, Peter Kell<\/strong> while appearing before a recent hearing of\u00a0Parliamentary Joint Committee for Oversight of the Australian Securities and Investments Commission and the Takeovers Panel.<\/p>\n

Kell made the statement in response to Bert Van Manen<\/strong>, MP who said life insurers had a role in dealing with advisers involved in the inappropriate replacement of policies and \u201c\u2026there are any number of insurance companies I have spoken to who actually know who these people are\u201d.<\/p>\n

In response Kell said, \u201cIt is interesting that you say that, because, in collecting this information from the insurers, we have had a few instances where insurers have said, ‘Oh, yes, well, we thought that name would pop up,’ and I suppose we have been a bit disappointed in some instances that, if it is clearly an issue, it has not been drawn up before.\u201d<\/p>\n

Van Manen also said that where life insurance companies were aware of churning, advisers had been placed on level commissions, and dealer groups also knew who these advisers were \u201c\u2026because they can tell by the revenue reports and replacement policies\u201d.<\/p>\n

Earlier in the proceedings Kell said \u2018churn\u2019 was not a legal term under the laws ASIC administered and it did not consider there was a point that all instances of switching or churning a policy were examples of problematic advice or misconduct.<\/p>\n

To this Van Manen replied, \u201cBut in fairness that has been the message that has been communicated.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

ASIC has admitted that some life insurance companies are aware of which advisers have been churning despite the latter not taking any action on the matter.<\/p>\n","protected":false},"author":3,"featured_media":37637,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8294,270],"tags":[4247],"class_list":{"0":"post-37622","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-claims","8":"category-remuneration","9":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37622","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=37622"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/37637"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=37622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=37622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=37622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}