POWERED BY MOMENTUM MEDIA
APRA moves on insurance opt-out
The Australian Prudential Regulation Authority (APRA) has moved independently of the Insurance in Superannuation Working Group (ISWG) to outline measures to compel superannuation funds to make it easier for members to opt out of insurance.
The regulator has flagged the imposition of a specific prudential standard as part of a consultation package which it said was aimed at assisting APRA-regulated superannuation licensees to be better positioned to deliver sound outcomes for their members.
The discussion paper acknowledged the work of the ISWG but made clear that APRA was proposing to amend Prudential Standard SPS 250 Insurance in Superannuation “to require an RSE licensee to provide simple and straightforward processes for opting out of all insurance products”.
In dealing with current arrangements, the APRA paper said the regulator had “observed a wide range of opt-out processes across the industry and supports the Government’s expectation that opt-out processes permit fund members to implement decisions about their insurance cover in a timely manner”.
Dealing with the proposed amendments to SPS250, APRA said the proposals sought to improve opt-out processes across the industry and align them with the Government’s expectation that opt-out processes enabled fund members to implement decisions about their insurance cover in a simple and straight-forward manner.
The industry has until 29 March, next year, to respond to APRA’s proposals with the regulator stating it expected to release its final requirements in mid-2018 with a view to them coming into effect from 1 January, 2019.
AUTHOR
Mike Taylor
Recommended for you
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
