Insurance key in super transfers

superannuation-funds/funds-management/insurance/ASFA/australian-taxation-office/association-of-superannuation-funds/treasury/ATO/trustee/government/

5 July 2013
| By Staff |
image
image
expand image

Superannuation funds which receive compulsory account transfers from the Australian Taxation Office (ATO) should be required to take positive steps to determine whether the member needs new or additional insurance coverage, according to the Association of Superannuation Funds of Australia (ASFA).

Responding to a Treasury discussion paper on lost and unclaimed superannuation, ASFA referred to the strategy to have inactive superannuation accounts compulsorily transferred to the ATO.

However, it said "one part of the strategy that may adversely impact retirement outcomes is the potential for a member to lose insurance coverage through the compulsory transfer of an account to the ATO".

"ASFA considers that the presence of an existing insurance arrangement should be part of the information provided to the ATO and to the fund to which the member's benefit is subsequently transferred, and that the recipient trustee should take positive steps to determine the member's need for new or additional insurance cover," the ASFA response said.

The response said that ASFA was broadly in favour of the initiatives put in place by the Government with respect to lost and unclaimed superannuation, but urged that the new regime be given time to work before a decision was made to pursue new courses of action.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 3 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks 2 days ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND