The Life Insurance Customer Group (LICG) wants the Financial Services Council (FSC) to put consumers first, accusing it of pushing the Life Industry Framework reforms on behalf of the big banks.

The LICG, which is made up of a number of financial services advisers, “is urging the FSC to adopt a position that will place the interests of the consumer above self-interest,” it says in an open letter.

“The LICG has repeatedly called on the FSC for evidence to back up claims that consumers will benefit from the proposals.

“To date the FSC has not responded with a reasoned reply.”

The FSC recently put the framework as one of its policy priorities for the life insurance industry, but the activists argue the framework is a complex issue with many stakeholders, including the consumer.

“The LICG is adamant that it is consumers who will be worse off under the FSC supported proposals,” the letter said.

“It is critical for all stakeholders to suspend self-interest to ensure that any changes to the industry are measured against positive outcomes for consumers.

“The FSC’s proposals will result in alarming competitive advantage being gifted to the big banks and FSC members.”

The LICG was formed last year to provide life insurance advisers with a voice in the framework debate.

It currently has an online petition that calls for the framework to be radically changed. To date the petition has attracted 2366 signatures.