Unit pricing guidelines amended
The major financial services regulators have amended their unit pricing guidelines in an effort to reduce the cost of doing business for the life insurance, superannuation and funds management industries.
The joint Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) Unit pricing — guide to good practice has been updated so that scheme operators can elect not to make payments to exited members for unit pricing errors where the compensation due is less than $20.
The decision has been made in stakeholders’ best interest, as they are the ones who ultimately have to bear the costs associated with writing cheques for small amounts.
The Investment and Financial Services Association welcomed the change, describing it as workable from a commercial perspective, and added it would continue to work closely with the regulators to improve the guidelines.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.