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”.
“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.