Inquiry urged into insurer/super fund payments

ASIC APRA Parliamentary Committee on Corporations and Financial Services superannuation life insurance

28 March 2018
| By Mike |
image
image
expand image

The financial relationship between life insurers and superannuation fund trustees should be placed under scrutiny by the regulators, according to the Parliamentary Committee report on the Life Insurance industry.

A key recommendation from the Parliamentary Committee on Corporations and Financial Services report is that the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) should “immediately undertake an audit of all superannuation trustees”.

It said this should be undertaken “to identify the nature, purpose and value of all payments, including any 'soft-dollar' benefits that occur between life insurers and trustees or any related parties in connection with the provision of default insurance to members of MySuper and choice superannuation products, including:

  • current and historical payments made by life insurers to trustees or any related parties and/or by trustees to life insurers under profit-sharing, premium adjustment models, experience share arrangements or any arrangement of a similar nature;
  • the total premium value attributable to the existence of profit-sharing, premium adjustment models, experience share arrangements or any arrangement of a similar nature between a trustee and a life insurer; and
  • payments, including any 'soft-dollar' benefits made or that may become payable by life insurers to trustees or any related parties of trustees for any purpose, for example, subsidisation of administration costs, technology, marketing, sponsorship, hospitality, staff expenses etc.

The committee report has also recommended that the results of such an inquiry be published by ASIC and APRA as soon as practical to ensure confidence in the compulsory superannuation system.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

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

1 month 3 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 months ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

2 weeks 3 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

1 week 3 days ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

1 week 1 day ago

TOP PERFORMING FUNDS