ASFA wants to exclude advice obligation from insurance claims

A major superannuation funds body has proposed to exclude advice obligations from insurance claims. This was made in response to a major government consultation on the proposed reforms to make insurance claims handling a financial service. In a submission filed with the Federal Treasury, the Association of Superannuation Funds of Australia (ASFA) said insurance claims handling should not be subject to the same obligations as financial advice and called against requiring superannuation funds to obtain an Australian Financial Services License (AFSL), noting that not all registrable superannuation entity (RSE) licensees hold an AFSL, Money Management reported. ASFA considers that while such licensees should be held to account in the same way as other trustees, it would be beneficial if RSE licensees were not required to obtain an AFSL for the sole purpose of satisfying this claims-handling obligation,” ASFA said.