FPA suggests naming and shaming
Superannuation fund trustees should be subjected to naming and shaming if they fail to comply with the code of conduct attaching to insurance within superannuation, according to the Financial Planning Association (FPA)
Responding to the Insurance in Superannuation Working Group (ISWG) consultation paper dealing with the proposed code practice, the FPA suggested that one Express.and then the superannuatiooption was to ensure that the Australian Securities and Investments Commission (ASIC) required all trustees who are Australian Financial Services licensees to be subject to an ASIC-approved code of practice.
It further suggested that ASIC impose the requirement as a condition of license.
However, the FPA cautioned against seeking regulatory intervention in circumstances where a large number of trustees were voluntarily subscribing to the code anyway.
“Instead, trustees could promote their subscription to the Code and the benefits it brings,” it said. “Further, a credible threat of sanction (including publicly naming and shaming funds that breach the Code) by the independent code administrator would promote compliance with the code behaviour and build public trust in entities bound by the Code.”
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
