Insurance alternatives (Part 3: Aggregate deductible funds)

From

Aggregate deductible funds (ADFs) are becoming a more common type of insurance alternative for buying groups who are looking for new ways to manage their risks. What is an aggregate deductible fund? An ADF is a self-insurance pool that is often used by corporate or community groups, religious institutions, sporting organisations or other groups of […]

continue reading

Insurance alternatives (Part 2: parametric insurance)

From

Following on from our last post about insurance alternatives, in this post we outline what parametric insurance is and how it can help you in a hardening insurance market. What is parametric insurance? Parametric insurance pays out a pre-agreed amount when a ‘trigger’ event happens. The amount is paid regardless of whether you have suffered any loss […]

continue reading

The rise of insurance alternatives (Part 1: An overview)

From

The insurance market is hardening which means customers can’t always find traditional insurance solutions for their risk. This has increased demand for insurance alternatives with greater flexibility and a wider range of solutions for ‘hard to place risks’. This is the first in a four part series of blogs exploring alternatives such as parametric products, […]

continue reading

What’s next for the financial advice Safe Harbour provision?

From

The Safe Harbour provision was supposed to provide financial advisers with more certainty in meeting their legal obligation to act in the best interests of their clients. But in the aftermath of the Hayne Royal Commission, the Safe Harbour provision’s days may be numbered. What is the Safe Harbour? More importantly, what isn’t the Safe […]

continue reading

Managing the risk of recovery in financial portfolio transfer transactions

From

We’ve recently noticed that both buyers and sellers have heightened concerns about their risks and exposures when transferring financial advice portfolios. Both are looking for different ways to manage their financial risk of recovery. Sellers want to know what their liabilities and obligations to the buyer are and when they will end. While buyers want certainty […]

continue reading

Don’t be blown off your feet by the new whistleblower protections

From

New whistleblower protections expand who is protected and what they can disclose. This regime applies to regulated companies and financial service providers including banks, life companies, general insurers and superannuation funds. More people are now protected whistleblowers The new regime came into force on 1 July 2019 and creates the concept of an ‘eligible whistleblower’. […]

continue reading

When can financial advisers recommend a switch to an in-house product?

From

There is a conflict any time a financial adviser recommends an in-house product, but the conflict can be managed. ASIC has determined that conflicts with in-house products do exist In its Report 562, ASIC looked at the big five financial service institutions – CBA, Westpac, ANZ, NAB and AMP – and found that 68% of their […]

continue reading

Deal trends: Warranties and indemnities in the sale of financial advice portfolios

From

The sale of financial advice portfolios is on the rise and both buyers and sellers are finding new ways to allocate risk. In this post, we put the current deal trends under the microscope. Following the Royal Commission, and as we move towards the deadlines for new FASEA requirements to be implemented, it’s become a […]

continue reading

Lenders may need to vary their licence to sell at POS

From

Financiers who distribute through retailers may need to vary their licence in preparation for the end of the point-of-sale (POS) exemption. The exemption was flagged to go by the Royal Commission. The credit representative model is the most obvious one to replace it. This will place financiers in a similar position to those who distribute insurance […]

continue reading

Five reasons ASIC will reject your licence application

From

ASIC rejects 30% of AFS licence applications and 24% of credit licence applications. In this article, we explain why it rejects applications and give you tips on how to avoid becoming a statistic. In 2017/2018, ASIC approved just 40% of all Australian financial services licence (AFSL) applications and 49% of credit licence applications. Many licence […]

continue reading