The Consumer Action Law Centre and advocate organisation Choice have proposed widening new banking accountability laws to apply to other financial services.

The groups want the laws to have an increased focus on consumer outcomes, which would likely lead to powers being shared by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission.

“We note that the Financial Conduct Authority is extending the UK’s equivalent regime to cover insurers and non-prudentially regulated firms as well as banks,” the groups say in a submission on the Banking Executive Accountability Regime (BEAR) reforms.

The new regime, which aims to increase accountability and ensure consequences for failures, is expected to take effect next July.

APRA says in a submission that aspects of the new rules could be applied over the longer term to other industries it regulates.

But the Insurance Council of Australia says extending BEAR would be inconsistent with the policy intent of the legislation and there is no need for it to apply to the sector.

It says the suggestion fails to recognise the strength of current consumer protection frameworks applying to insurance, impending regulatory reforms and work the industry is doing to improve outcomes for customers.

“The Insurance Council is not aware of any issue in the general insurance sector that is systemic and prudential,” a spokesman told insuranceNEWS.com.au.

The Financial Services Council has also argued that life insurance, superannuation, funds management and advice businesses not owned by deposit-taking institutions should be excluded from the scope of the BEAR.

“If the regime is to be made into law, we believe it ought to apply true to label,” it said in an earlier submission.