ANZ has committed to the insurance in superannuation code of practice in a move it says will improve member outcomes.
In a statement, ANZ said it is “the first bank-owned retail super fund” to adopt the new code, which was put forward by the Insurance in Superannuation Working Group (a body consisting of superannuation industry bodies).
According to the bank, many of its funds already meet the requirements laid out in the code.
“Our super funds already adhere to a number of the code’s aspects, including simple arrangements for members to opt-out of life insurance, and we have additional initiatives underway to comply with other code requirements,” ANZ head of superannuation Mark Pankhurst said.
The bank said its adherence to the code will also prevent members’ insurance payments from damaging their super balances.
“We are also focused on ensuring customers at different stages have the appropriate level of cover that doesn’t eat into their balances unnecessarily, and is presented in clear language so people can easily understand their insurance,” Mr Pankhurst said.
The funds that will be impacted include OnePath MasterFund, Oasis Superannuation MasterTrust, Retirement Portfolio Service and ANZ Smart Choice Super, the statement said.
Last year, insurance company ClearView issued a statement calling the Insurance in Super Working Group’s proposed code a “significant mistake”.
Several firms have been impacted by the corporate regulator’s action.
Super funds must now have a retirement income strategy in place.
Vanguard has called for a complete overhaul of the advice industry.
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