Welcome to our Regulatory Update - July 2023

Welcome to the July edition of our Regulatory Update.  Over the past few months, there have been several developments in insurance and superannuation regulation in Australia.

In an early June address to the Association of Superannuation Funds of Australia (ASFA), The Hon Stephen Jones MP Assistant Treasurer and Minister for Financial Services announced that the Government will adopt the bulk of the Quality of Advice Review’s recommendations immediately, with legislation to come in the second half of 2023 and early 2024. He also went on to say Superannuation funds must play an expanded and more effective role that serves the needs of their members and that they want funds to know their members better and help them navigate their needs.

Solving the needs of members and their experience is complex. At a TAL sponsored round table, hosted by Investment Magazine there were robust discussions on the topic. It was acknowledged that this demands a deep understanding of member cohorts, solutions delivered through multiple channels, and significant investment in people and systems. Read more.

The Senate passed legislation to establish the Compensation Scheme of Last Resort (CSLR), ensuring victims of financial misconduct will finally have access to redress and compensation. The legislation took effect on 3 July when Royal Ascent was granted.

In this edition, we cover more on the Objective of Super, hear from our own experts on the Quality of Advice review and celebrate the implementation of a refreshed Life Code.

Objective of super

The objective of super continues to be a topic of conversation in the industry. TAL’s acting Chief Commercial Officer, Jenny Oliver joined a panel at the recent ASFA Spotlight on Insurance alongside industry leaders. The panel discussed the objective as proposed by Albanese Government earlier in the year which outlines that the objective of superannuation is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way. Jenny Oliver said, “While insurance is not mentioned explicitly, there are some very important words in the proposed objective – dignified, equitable, sustainable Insurance within super plays a critical role to ensure all Australians are equitably provided with a dignified retirement, not just those who live a full and active working life.”  TAL supports the objective, and in case you missed it, you can read more about our contribution to this important conversation here.

Quality of Advice Review

The long-awaited Government response to the Quality of Advice Review (QAR) was delivered early in June. Minister for Financial Services the Hon. Stephen Jones released the response in which the Government accepted the majority of the proposed QAR reforms, either in whole or in part, withholding immediate support for others. Our Head of Corporate and Government Affairs unpacks what this means. Read more.

New Life Code

More recently LICOP 2.0 (the Code) commenced 1 July, introducing several enhancements to life insurer commitments and obligations to support better member experiences and outcomes. We have been preparing for the launch of LICOP 2.0 for months to ensure that TAL meets and, where possible, exceeds the new obligation requirements that the latest version of the Code sets out. Find out what this means for you. Read more.

Get in touch to learn more

Please get in touch with your Client Manager if you’d like more information on any of the topics in this edition, or with feedback or suggestions for future issues.