Govt side-steps cost of life commissions ban
The Federal Government has sent a clear signal it will not be legislating to remove perceived conflicts of interest on superannuation fund boards, and has side-stepped the issue of whether banning commissions on life/risk inside superannuation will increase the cost of insurance.
The conflict of interest issue has been raised by the Federal Opposition with respect to some people holding multiple positions on industry superannuation fund trustee boards, but a Treasury answer to a question on notice has ruled out any legislative remedies.
The Treasury answer said that while the Government supported best practice in governance, it believed the matter should be “addressed, to the extent possible, by a voluntary industry code of governance and, where appropriate, by prudential standards”.
It said the Government would consult with relevant stakeholders on design and implementation issues and this would provide an opportunity for best practice issues, including remuneration, to be raised if appropriate.
On the question of whether banning commissions on life/risk products inside super would increase costs, the Treasury answer said “we are not in a position to comment on the possible commercial outcomes of implementing legislative reforms”.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
