Welcome to the Financial Services Bulletin, June 2017
Thank you to the 200 clients who attended our Autumn Life Matters seminars last month in Sydney, Brisbane and Melbourne! Stay tuned for details of our next Life Matters seminars in Spring.
Later this month in conjunction with ALUCA we are hosting the second Life Insurance Future Thinking (LIFT) Alumni Roundtable event. LIFT brings together the past winners and runners up of the ALUCA TurksLegal Scholarship since 2007, a group of 23 passionate and insightful life insurance professionals working at all levels, across all aspects of the life insurance industry. The Alumni will be joined by a panel of experts including a representative from ALUCA and the FSC, a medical specialist and other senior industry executives. This year the group will discuss the very pertinent topic of Living the Code: Engendering Trust as a Life Insurance Professional. We will report on the outcomes of the Roundtable event in the next edition of the FSB.
Please read on for the latest industry news, important case law developments, our selection of recent FOS and SCT determinations and the answer to a client's question on the Capability Clause in our topical 'Turks Q&A' segment.
We hope you enjoy this edition of the FSB!
Important changes to Australian Capital Territory discrimination legislation
The Australian Capital Territory has expanded the number of ‘protected attributes’ protected by law from discrimination (expanded from 15 to 24) under the Discrimination Act 1991 (Australian Capital Territory). Read more
Changes to the powers of the Australian Human Rights Commission
Recent changes to the Australian Human Rights Commission Act 1986 (Cth) in the recent amendments to the Commonwealth anti-discrimination regime impact on the powers of the Australian Human Rights Commission and have implications for the way in which insurers may wish to approach complaints made to the Commission. Read more
ASIC Proposes Reforms to AFSL Breach Reporting Regime
The ASIC Enforcement Review Taskforce has produced a consultation paper, 'Self-Reporting of contraventions by financial services and credit licensees', which identifies concerns within the current self-reporting regime and proposes preliminary reforms to address them. The proposed reforms are broadly outlined in this article. Read more
CASES AND TRIBUNAL DECISIONS
A Fork in the Road: The two stages of inquiry for litigated life insurance claims
Wild v FSS Trustee Corporation as trustee of the First State Superannuation Scheme
It is well-established that in litigated life insurance matters, where the payment of a benefit depends on an insurer reaching an opinion, there are two stages of inquiry for the Court to determine. Justice Stevenson delivered an ex tempore judgment in this decision as trustee of the First State Superannuation Scheme allowing separate determination of these two stages. Read more
Federal Court finds first breach of best interests duty
Australian Securities and Investments Commission v NSG Services Pty Ltd
In this decision, the Court found that financial advice firm NSG Services had failed to take reasonable steps to ensure that its advisers acted in the best interests of its clients when providing advice and as a result, on a number of occasions, NSG advisers provided clients with advice that was inappropriate. Read more
RECENT FOS & SCT DECISIONS
- FOS finds blanket mental health exclusion breaches Disability Discrimination Act (Cth), read more
- Where there’s a Will there’s not always a way, read more
In this edition of TurksLegal Q&A, we respond to a client's question about the Capability Clause. Read more