Julie Matheson told ifa the AFSL system is to blame for product failures within the industry.
“The licensing system permits the bundling up of products and services under third-party licensees so that no one really understands who’s responsible,” she said.
“Consumers don’t know who to turn to, and who is ultimately responsible for flawed and faulty insurance products in the system.
“The licensing system encourages confusion and the blame game, and is an untrustworthy system.”
Ms Matheson’s comments follow Senator John Williams’ calls for a life insurance inquiry.
She said the best system for the industry would include true-to-label products and agents, underpinned by ethics and transparency.
“If a consumer wants insurance products, they should go to an insurance company or see a professional insurance broker or agent,” she said.
“The insurance company would be responsible for their products and the agents who recommend them, not a third-party licensee like the current system.
“The provider of the product should be regulated to stand by their product, and make sure their agents are properly trained to professional standards.”
Ms Matheson ran in this year’s federal election as an independent candidate for Western Australia in the Senate, as reported in ifa magazine.
At the time of publication, she had 1,171 first preference votes, the most votes of any WA candidate not grouped under a ticket, according to the Australian Electoral Commission website.
All of them.
This is part of the problem you need an AFSL to advise on product but you also need an AFSL to produce a product. Just different authorisations. In some cases these can be on the same AFSL.
This is one reason why the Adviser (soft target) usually get the blame!!
Can we please have one example of a product failure caused by an ASFL?