POWERED BY MOMENTUM MEDIA
APRA flags 2020 for finalising related party action
Superannuation funds should brace for having to begin stricter reporting around their selection of group insurers later next year.
The Australian Prudential Regulation Authority (APRA) has flagged its intention to finalise changes recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in 2020.
The Royal Commission recommended that superannuation funds that engaged a related party to provide group life insurance or who entered into a contract which delivered them a privilege should be required to report to APRA.
The Royal Commission recommended that the affected superannuation funds should be required to provide within a fixed time “independent certification that the arrangements and policies entered into are in the best interests of members and otherwise satisfy legal and regulatory requirements”.
APRA used the release of an update of its response to the Royal Commission recommendations to note that it had moved to strengthen relevant prudential framework and that the enhancements included refinements that would strengthen the requirements on trustees when selecting an insurer “especially when a potential insurer is a related party”.
“APRA will be consulting on proposed changes to the prudential framework later this year with a view to finalising them in 2020,” the regulator said.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
