Welcome to the Financial Services Bulletin (FSB) – March Edition, 2018

This is our first FSB for the year, delivering recent industry news, an important case law development, a selection of FOS and SCT determinations and TurksLegal Q&A.

Industry News

Banking Royal Commission
Public hearings in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry will re-commence on 13 March 2018.

Australian Financial Complaints Authority update
The Bill establishing the Australian Financial Complaints Authority passed both Houses of Federal Parliament on 14 February 2018.

Increase in FOS compensation caps from January 2018
From 1 January 2018, FOS will be able to award increased remedies for claims in a dispute.

Cases and Tribunal Decisions

Group Cover - The Duty of Disclosure and the Remedy of Avoidance
Sharma v LGSS Pty Ltd [2018] FCA 167
On 1 March 2018 the Federal Court delivered judgment in Sharma v LGSS Pty Ltd [2018] FCA 167 being an appeal from the Superannuation Complaints Tribunal which had affirmed the insurer’s right to avoid the “voluntary” portion of the cover of a member under a group policy.

RECENT FOS & SCT DECISIONS

• Manifestation and disclosure – what and when?
• Tribunal determines that Insurer and Trustee’s decisions to decline claims for TPD and IP benefits were fair and reasonable.

TurksLegal Q&A

Fraud - can a life insurer cancel the policy?
In this edition of TurksLegal Q&A, we respond to a client's question on fraudulent claims.

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