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Suncorp pays $1.4m in compensation
Suncorp Life and Superannuation has paid $1.4 million in compensation to 4,000 GuardianFP clients following a remediation program.
In January 2015, the corporate watchdog found deficiencies in the life insurance advice Guardian Advice provided to its retail clients and it was concerned Guardian Advice had failed to comply with its general obligations as an Australian Financial Services licensee.
These included monitoring and supervising its representatives and ensuring they were adequately trained or competent.
In November 2015, Suncorp announced it would exit the financial planning business carried on by Guardian Advice but the Australian Securities and Investments Commission (ASIC) obtained a commitment from Suncorp that it would complete the remediation program and fund the compensation of clients.
ASIC noted Suncorp also compensated clients who may have been at risk of having received poor advice from “high-risk” advisers “who were identified using a range of risk metrics applied to all advisers in the Guardian Advice network”.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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