Super funds and advisers closer on fee consent

There appears to be growing alignment between superannuation funds and financial planning groups around the documentation underpinning financial advice fee deductions.

Submissions to Treasury reveal that both groups want consistency including use of a common form approved by the Australian Securities and Investments Commission (ASIC).

The Association of Superannuation Funds of Australia (ASFA) has told Treasury that the Government should consider providing ASIC with the power to publish a form to cover the deduction of one-off advice fees from superannuation accounts.

As well, ASFA noted that the Quality of Advice Review (QAR) had recommended that the Corporations Act be amended to entitled product issuers such as superannuation funds to rely on a prescribed form in relation to ongoing fee arrangements.

“This would be a useful assurance for superannuation fund trustees administering the deduction of fees on superannuation accounts where the relevant obligations are met.

The recommendations from ASFA come against the background of the Financial Advice Association of Australia (FAAA) which late last year lamented the Government’s failure to mandate a fee consent form.

The FAAA argued that a standardised fee consent form would only deliver productivity benefits if product issuers are required to accept it.

The FAAA also emphasised the need for the Government to remove the requirement for product issuers to verify client consent for ever account or “require product issuers to accept the standard form of evidence of client consent”.