POWERED BY MOMENTUM MEDIA
Insurance in super code must be binding
Any code of conduct covering insurance inside superannuation needs to be enforceable on superannuation funds and insurers from the get-go, according to plaintiff law firm Maurice Blackburn.
Maurice Blackburn principal, Josh Mennen warned against any watering down stating it was essential that the Insurance in Superannuation Working Group (ISWG) guaranteed that all parties, including trustees, were bound by the final code of conduct.
“The ISWG appear to be considering watering down the crucial objective that all trustees of regulated super funds be bound by the code from inception,” he said and noted reported comments that the final code might not be enforceable to begin with.
“To the extent that the concerns raised in submissions have merit, they can and should be resolved to ensure that all trustees are on board when the code comes into force in 2018,” Mennen said.
The law firm cautioned against the ISWG allowing concerns about conflicts between the code and the provisions of the Superannuation Industry (Supervision) Act being allowed to substantially erode the value of the code.
“The ISWG process must ensure any final code from the get-go has teeth or it risks having all the bite of a month-old lettuce. It must be enforceable with regulatory oversight and binding,” Mennen said.
“For the ISWG to concede that it is comfortable with releasing a final code that might ‘start non-binding’ and that if ‘enough sign up from the outset it will become the industry standard’ undermines the basic objective of an enforceable code of conduct,” he said.
AUTHOR
Mike Taylor
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
