According to a statement from the Australian Securities and Investments Commission (ASIC) today, the banking group was found to have perpetrated a number of compliance breaches, affecting over 849,000 life and general insurance customers and resulting in $23 million in refunds.
Suncorp has now agreed, following the independent review, to implement a number of enhancements to its compliance program, including “monitoring and supervising representatives in its life and general insurance businesses, reporting incidents and breaches in its life and general insurance businesses, administering insurance policy customer discounts in its general insurance business, and training representatives in its general insurance business.”
ASIC deputy chairman Peter Kell said that the group “acted appropriately in reporting the breaches to ASIC as it identified them, and in acting to remediate affected customers”.
“ASIC was keen to ensure Suncorp’s systems were adequate to prevent the breaches happening again, so requested the independent review,” Mr Kell said.
“Suncorp has taken a constructive approach and ASIC is pleased Suncorp is improving its compliance systems in a way the review suggested.”
Yet another example of how FOFA will not fix our industry’s problems. Yet another example of how vertical integration fails the client Best Interest Test. The government has encouraged Institutions and Industry funds to control the advice process.800,000 clients – disgraceful. CBA,Suncorp who is next? ASIC and government will say “See this is why we needed FOFA” when really, they should say this is an intended consequence – we were warned in various submissions and we we made a decision to create this situation rather than address it – they provided the fuel, the matches and the oxygen.
Well isn’t that interesting:”perpetrated a number of compliance breaches, affecting over 849,000 life and general insurance customers and resulting in $23 million in refunds”.
Imagine for one second an IFA “perpetrated” a single breach that affected a few clients,ASIC would hunt you down, take your licence & you would be unlikely to work again in this industry. BUT a bank….they have to “boost compliance”. One rule for us & one for the big boys!