Skip to main content

3 in 4 super members ‘particularly trust’ super fund advice

Mike Taylor14 May 2024
Man astride a pendulum

Industry funds see advantages in the changes flowing from the Quality of Advice Review (QAR) recommendations and are urging the Government to reduce the implementation time to three months, rather than 12 months after royal assent.

The Super Members Council (SMC), representing industry funds, has asserted that superannuation funds particularly trust advice from their industry funds.

“It is in the interests of millions of everyday Australians that the Parliament fast-tracks all three pieces of this urgent legislative reform,” the SMC has told the Senate Economics Legislation Committee review of the legislation.

“Australians approaching retirement strongly want more information and advice to help them to make the best decisions for their retirement. Three in four super fund members say they particularly trust advice from their own super fund if it is tailored to their personal circumstances – reflecting community sentiment that super funds understand their members’ needs,” it said.

At the same time, the SMC recommended the legislation “clarifies and codifies the status quo when charging advice fees: that trustees must satisfy themselves that advice charged out to super accounts is about the member’s super”.

“The legislation does not change the existing requirements,” it said.

“To give further clarity, SMC suggests the Government include in the Explanatory Memorandum and Parliamentary processes that the intent of the legislation is for trustees to be able to continue to take a risk-based approach (as outlined in the ASIC/APRA joint letters of 2019 and 2021),” it said.

“We propose this be included in an updated Explanatory Memorandum and in Committee Consideration in Detail stage in the House or in the Senate as part of debate of Committee Of The Whole – where the responsible Minister can provide clarifying statements of intent – these statements would be included as part of the legal understanding of the Act.”

“In relation to the commencement date of the measures, the earlier Treasury consultation draft proposed the legislation should take effect three months after Royal Assent on the Bill. The legislation presented to Parliament proposes it take effect 12 months after Royal Assent.”

“This Bill allows more Australians to get access to the advice they need to plan wisely and well for retirement. SMC therefore recommends the original proposed commencement of the legislation.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

Subscribe to comments
Be notified of
9 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Anon
9 hours ago

Only 3 out of 4?

50 out of 50 of Melissa Caddick’s clients trusted her. 1000 out of 1000 of Bernie Maddof’s clients trusted him.

Trusted is not the same as trustworthy. Consumers need to be protected from financial advice provided by people they trust, who are not properly licensed or qualified, or have conflicts of interest.

Chrisso
3 hours ago
Reply to  Anon

So so true

Doubfounded
9 hours ago

What a load of crap!!

Big Barry
9 hours ago

Last I read super funds are the most complained about with AFCA, Australian Super fined Millions for double up in accounts, what about the double up of insurance charged to these accounts I bet they didn’t even look at that…

Edward
4 minutes ago
Reply to  Big Barry

People have positive feelings about their super fund because industry super has done a wonderful job of creating and advertising that image…that is until they actually have to deal with their fund and find endless delays, poor service and if advice can be obtained, it’s usually of poor quality and high cost. The AFCA complaints and consumer review numbers show this.

Industry Super Own Canberra
8 hours ago

Amazing. Industry Supers own research says members trust their Sales Advice.
That’s going to be given by:
– Uneducated,
– Unqualified,
– Vertically Owned,
– Back Packer Call Centres,
– Selling Only a Single Product,
– 50% Unlisted Assets that only ever go up in value.
– And Next to Zero AFSL Compliance.

But wait it gets better:
– Every Member Pays for this Back Packer Sales Advice via HIDDEN COMMISSIONS.
– And 90% of members are Paying HIDDEN COMMISSIONS for NO SERVICE.
No Conflicts at all.
And AFCA are already busy with Industry Super complaints. RC 2.0 let’s go.

Researcher
8 hours ago

Mr Jones promised quick wins to qualified advisers providing quality advice 2 years ago and has delivered nothing. His union fund mates now want special treatment to be able to employ back packers providing conflicted advice in the best interest of super funds quicker than normal. I wonder who he will prioritise?

ASIC Rep 639
8 hours ago

Asics own research in 2019 Report 639 confirmed less than 50% of Super Fund Advice met best interests of the member and 15% was detrimental. A 3 times higher amount of FFNS (admin fee uplift) or poor outcomes than Private Advisers according to last week’s research.

This “study” is particularly bias considering who completed the research. Industry funds are responsible for more afca complaints more poor advice and more bad outcomes for Australians.

RETRACT or BAN their conflicted sales Advice, do not expand it. Professional bodies for Advice educate the public on this.

Brad
8 hours ago

So your saying that the Industry Funds will allow unqualified uneducated quasi advisers (backpackers and call centre operators) they employ from who knows where, the power to decide when it’s Ok to dip into Australians Retirement savings without the need for a formal document, without the need to provide adequate choice of super fund.
So Australian Super are telling their fund clients that Australian Super is the most appropriate super fund to invest their retirement savings and then taking a fee for retaining that client in Australian super.
Yeh that’ll work!!
This government is looking to green light the biggest heist of Australians retirement funds in history.
What so called Advice are they going to be charging for?
These funds will be getting rewarded simply for retaining a member under the fund they are already in. What a scam!!!!!
What a deception that is on the Australian public! So the Federal minister is seriously going to endorse this garbage.
What personal advice can a vertically aligned super fund possibly provide these clients besides fund retention???
Answer that question Minister. The ministry of fools!!!
What are the members paying for? An industry fund to give them a bias opinion to stay with their fund. How can anyone possibly believe this form of advice is not bias or tainted?
How many Industry Funds will recommend a client use a Self Managed Super Fund when appropriate, I wonder????
It’s beyond belief how this government continue to treat the public like imbeciles and continue to allow the big industry funds to gouge Australians retirement savings for doing absolutely nothing.