Hostplus flags higher adviser fee caps

Major industry superannuation fund, Hostplus is promising financial advisers the introduction of monthly fee deductions and higher fee caps, as part of a year-long program of improvements.

The fund has outlined what it is calling an “adviser services roadmap” which it has outlined to financial advisers, including those whose clients have been transitioned into Hotplus as a result of its member which Statewide Super.

The fund has signalled that its monthly fee deductions and higher fee caps will be implemented in the fourth quarter of this year, along with enhancements to the fund’s Adviser Portal to include a document upload facility, the ability to generate Centrelink Schedules and self-generation of member account summaries.

It said that moving into next year, the Adviser Portal would include the introduction of:

• The ability to request your advice fees via the portal
• Self-registration for access to the Adviser Online portal
• Registering/renewing your TPA
• An improved dashboard which includes TPA and advice fee reminders.

Hostplus has outlined to advisers the their fee limits with the maximum fee payable being the lower of $3,000 or 1.5% of a members’ account balance.

“Your client must retain a minimum balance of $6,000 in their Hostplus account after the deduction of the fee is applied. Advice fee amounts are definable as ‘inclusive of GST’ as either a dollar amount or percentage amount,” the fund said.

“We are in the process of enhancing these provisions to introduce:

• monthly by instalment advice arrangements (for a 12-month period), and
• a higher fee limit per financial year.”

Under the heading of “Advice Fee Audits”, the fund states:

Hostplus (Trustee) is required by APRA and ASIC (Regulators) to monitor and maintain oversight on advice fees charged by financial advisers. More specifically, the advice fee oversight needs to address four key areas:

1. Are the deductions explicitly authorised by Members and are they consistent with the authorisations and disclosures made to Members?
2. Has advice been provided?
3. Is the deduction consistent with the sole purpose test?
4. Is the deduction in the best financial interests of the Member?

Hostplus reserves the right to request a Statement of Advice relating to any Advice Fee Request and to withhold any Advice Fees (or seek refund of a fee already paid) to the extent it forms the reasonable view that the Statement of Advice does not relate to a matter that would allow Hostplus to action the deduction of Advice Fees, under the relevant law.”