{"id":46381,"date":"2019-09-18T12:35:47","date_gmt":"2019-09-18T02:35:47","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=46381"},"modified":"2019-09-18T12:35:47","modified_gmt":"2019-09-18T02:35:47","slug":"clearview-pays-up-for-poor-life-insurance-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/09\/18\/clearview-pays-up-for-poor-life-insurance-advice\/","title":{"rendered":"ClearView Pays-Up For Poor Life Insurance Advice"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">ClearView Financial Advice has offered $730,138 in financial compensation to 215 clients, following the completion of a review and remediation program for clients who received poor life insurance advice.<\/span><\/p>\n<p><!--more--><\/p>\n<p class=\"p1\"><span class=\"s1\">Under this program, the company reviewed 4,269 advice files from 279 of its advisers and remediated clients who had suffered loss. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Aside from those who were offered financial compensation, a further 21 clients received non-financial remediation through reissued advice documents and fee disclosure.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ASIC stated it first identified issues of non-compliant advice by ClearView\u2019s representatives back in 2014, during an industry-wide review of retail life insurance.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The regulator found a sample review of ClearView&#8217;s advice files highlighted broad areas of concern including: <\/span><\/p>\n<ul>\n<li class=\"p1\"><span class=\"s1\">Inadequate needs analysis for client<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Insufficient explanation about the pros and cons of using superannuation to fund insurance premiums<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Inadequate consideration of premium affordability issues <\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Poor disclosure about replacement products<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">ASIC raised these issues as well as some concerns related to the conduct of Jason Churchill, one of ClearView\u2019s advisers at the time.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ASIC accepted an enforceable undertaking (EU) from Churchill in 2016, for failure to meet his obligations as a financial adviser. Under the EU, Churchill agreed to undergo additional training, adhere to strict supervision requirements and have each piece of advice audited by his authorising licensee before it was provided to clients. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ClearView separately undertook to review advice previously provided by Churchill and remediate clients who had received inappropriate advice.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The company also commenced a review of the personal insurance advice provided by its advisers to determine if there was a systemic issue related to the broad areas of concern identified by ASIC and engaged Deloitte to provide independent oversight. This review found that a number of ClearView\u2019s advisers did not undertake adequate \u2018needs analysis\u2019 for clients.<\/span><\/p>\n<h6><span class=\"s1\">\u201cThe needs analysis is a critical part of the financial advice process.&#8221;\u00a0<\/span><\/h6>\n<p class=\"p1\"><span class=\"s1\">\u201cThe needs analysis is a critical part of the financial advice process. It enables advisers to understand their clients\u2019 financial situation, needs and objectives, and provides the basis for the financial advice,\u201d ASIC stated.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ClearView then undertook the full review and remediation program to identify all instances of this issue and to remediate any adversely affected clients.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">This program was in accordance with Regulatory Guide 256: Client review and remediation conducted by advice licensees (RG 256) and was overseen by Deloitte.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ClearView Financial Advice has offered $730,138 in financial compensation to 215 clients, following the completion of a review and remediation program for clients who received poor life insurance advice.<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,8],"tags":[],"class_list":["post-46381","post","type-post","status-publish","format-standard","category-company-news","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46381","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\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=46381"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46381\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=46381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=46381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=46381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}