ASIC criticises limits on super insurance code
The Australian Securities and Investments Commission (ASIC) has pointed to the insurance inside superannuation code of practice as having “significant limitations” because of its lack of enforceability.
ASIC deputy chairman, Peter Kell used an address to the Actuaries Institute to point to both the benefits and deficits of the insurance inside super code but made clear the regular saw it as having significant limitations.
Kell said that while the insurance in super code represented an important step in recognising the need for industry to play a role in reforming the area and had the potential to introduce clearer and more consumer-focused disclosure, it was still too limited
“…the code has significant limitations, such as its lack of enforceability and lengthy transition period into 2021,” the ASIC deputy chairman said.
Kell’s comments have come against the background of a substantial number of funds signalling their voluntary commitment to the code.
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When you compare the performance of the financial services regulators with the ACCC you see what poor value for money we receive from ASIC and APRA
The industry had a go. It may not be perfect. Of course the vacuum that had to be filled by the Code was created by failed regulators unable or unwilling to do their job. They have power and people coming out their ears. They cost Australians millions of dollars a year.
If ASIC thinks something different should apply why isnt it doing something about it? More words!!