Unit pricing guidelines amended
The major financial services regulators have amended their unit pricing guidelines in an effort to reduce the cost of doing business for the life insurance, superannuation and funds management industries.
The joint Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) Unit pricing — guide to good practice has been updated so that scheme operators can elect not to make payments to exited members for unit pricing errors where the compensation due is less than $20.
The decision has been made in stakeholders’ best interest, as they are the ones who ultimately have to bear the costs associated with writing cheques for small amounts.
The Investment and Financial Services Association welcomed the change, describing it as workable from a commercial perspective, and added it would continue to work closely with the regulators to improve the guidelines.
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