Discussion Paper: Account balance erosion due to insurance premiums
The submission to the Financial Services Council's Discussion Paper titled "Account balance erosion due to insurance premiums" was prepared by the Superannuation Committee of the Law Council's Legal Practice Section.
The Committee notes the majority of the key questions raised in the Discussion Paper, (i.e. B.1 Questions, B.2 Questions, B.3 Questions, B.4 Questions, B.5 Questions, C.1 Questions and C.2 Questions) are more appropriate for the industry to address. However, the Committee would like to specifically address the following questions:
- Key question 7 - Are there any other considerations that should be called out? (In relation to: Establish design principles to be adhered to when determining automatic cover and affordable insurance premiums).
- Key question 47 - To what extent does the current regulatory environment support superannuation fund's efforts to help members make informed decisions about consolidating?
- Key question 48 - What complexities with regulatory guidance prevent superannuation funds from providing general advice because of concerns that it may be deemed personal advice?
You can read the full submission below.