O’Dwyer wants RC scrutiny of code of practice

The Minister for Revenue and Financial Services, Kelly O’Dwyer has repeated her criticism of the lack of compulsion attaching to the Insurance inside Superannuation code of practice.

Speaking on national radio, O’Dwyer said she was concerned about the code of practice and believed it should be examined by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The minister said that while some in the industry had sought to make some positive change, it did concern her that the code of practice “isn’t remotely binding”.

Related News:

“There is no enforcement mechanism for it, so it’s a lot of worthy aims without really any stick,” O’Dwyer said.

The minister’s statement has come as a series of industry superannuation funds have confirmed their commitment to the code, irrespective of compulsion.

Elsewhere in her weekend statement, O’Dwyer referenced the need for industry superannuation funds to be more flexible in releasing funds when members move outside enterprise bargaining agreements.

Claiming some funds appeared reluctant to release money, the minister said it should not continue to be difficult.

“… it shouldn't be that difficult, it shouldn't be that hard, it is the member's money, it doesn't belong to the fund and it should actually go where the member wants it to go,” O’Dwyer said.

Related Content

Risk experts welcome RC report

The Actuaries Institute has joined the chorus welcoming the Royal Commission’s final report, saying that it looks forward to assisting the Financial...Read more

Consolidation won’t end low-balance super accounts

Legislation to consolidate low-balance superannuation accounts needs to go further if it is to prevent a cycle of unintended accounts still being crea...Read more

APRA points to legislative change for super

A former Westpac senior executive turned academic and a former acting governor of the Reserve Bank of New Zealand have joined former Australian Compet...Read more




Have I got this right? the accountable minister of the crown for financial services can't work out how to encourage or require funds to adopt a code of conduct re insurance so believes the royal commission should do that part of her job for her too? This minister is such a disappointment.

Add new comment