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The Financial Services Council (FSC), which represents major life insurance companies, has launched a new set of standards and guidance for its members.
The FSC code of conduct has nine standards, which fall into three core objectives covering ethical, communication and consumer outcomes. It states that members face being fined of up to $100,000 should they fail to put the interests of consumers first. If there is a material breach of the code, an Independent Disciplinary Committee can also terminate FSC membership.
“The code is a big step forward and it’s about the industry committing to high standards and continuous improvement,” FSC chairman Rob Flannagan said.
FSC chief executive officer Richard Klipin, meanwhile, noted the code is designed to sit alongside and complement existing regulation and laws.
“We expect and welcome a high level of regulatory scrutiny as part and parcel of how we operate,” he added. “While we recognise there is still plenty of work to do, with the launch of this code of conduct, the industry is putting a stake in the ground.”
The new code will come into force on January 01, 2019.
