Super funds can deliver on advice says ASFA
The Association of Superannuation Funds of Australia (ASFA) has welcomed the Government’s acceptance of key elements of the Quality of Advice Review aimed at making it easier for superannuation funds to deliver financial advice.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones outlined the Government’s position to a closed ASFA forum this morning prompting the organisation’s deputy chief executive, Glen McCrea to claim they will improve accessibility of advice.
He claimed the proposed reforms would improve the regulatory framework so that:
- Superannuation funds can provide more relevant advice to members in the lead up to and during retirement
- Superannuation trustees have discretion in how they charge for advice provided to their members to improve cost effectiveness and access to advice for all members
- The requirement to provide a statement of advice (or record of advice) is replaced with the requirement for providers of personal advice to provide fit-for-purpose advice records which are more meaningful for consumers
“These reforms will improve access to financial advice and retirement outcomes. They will also increase the efficiency, cost-effectiveness, and consumer experience of advice,” McCrea said.
Facing into criticisms from some sections of the financial planning profession, McCrea’s statement stressed that superannuation fund trustees have existing obligations to act in their members’ best financial interests and a specific duty to assist members with their retirement needs. This underpins a high level of consumer protection for members receiving advice.
A September 2022 ASFA survey of superannuation funds found that the majority provided intra-fund advice and personal advice.
“Superannuation funds are well placed to deliver the financial advice that consumers want and need. This can range from relatively simple advice around a single issue such as contributions or investment options, to more holistic advice around retirement,” said Mr McCrea.
ASFA said it was encouraged the Government remains open to finding the best solutions for consumers and will consult on further potential changes.
ASFA remains committed to working with Government to implement reforms that improve the affordability and accessibility of advice for superannuation fund members, without reducing the quality of advice or level of consumer protections.
Just last month in May 2023 Australian Super’s ‘alarming’ $70m double-up on customer accounts sparks calls for wider investigation
Australia’s biggest superannuation fund has revealed that it has been double charging some customers, and will refund around $70 million in fees and insurance costs to about 100,000 people.
Yeah I’m sure they will give good advice…. don’t worry about collectively charging everyone for personal advice the consumers will not receive….
Could someone who is probably much smarter than me, please answer how does the removal of the “Safe Harbour” steps work if the “Good Advice” recommendation is not adopted? Also, how is actually possible that legislation could be introduced for exempting independent advisers and super funds to meet BID obligations that would also specifically exclude banks from either directly and/or indirectly providing digital advice for retirement financial planning? Another, legislation disaster for the already decimated financial planning profession just waiting to happen….. stayed tuned for Jones & Co. in 2024 and grab the popcorn to watch the next meltdown!
Why is this information being released to a private forum?
‘Boys’ Club’ never any doubt of this sham review outcome – Labor Gov allowing union industry super funds yet more free range in what they do with less accountability (importantly not only less legislative accountability but also less compared to other FP’s or financial institutions – all under the pretext and virtue signalling banner of ‘affordable advice for the public’ – what a coup for Labor & the unions!)
End result: more hidden fees flowing out of the member’s super balances to the unions and Labor.
Always their agenda.
One thing about Labor/unions, they play the long game very very well and have a unified direction to control the narrative with a common end goal in mind; enhancing their own personal wealth while tightening their power and grip on the nation.
Pity the same can’t be said for the farcical, hopelessly headless LIb’s and the disparate, discordant FP voices and groups.
Since FOFA (if you are old enough to remember it) vertical integration has been the one common denominator of almost all the problems, far more so than the “dodgy advisers”. It has never been addressed by any enquiry or review not mention the useless RC.
Advice cannot be linked to product but with the inherent conflicts for the big end of town, especially the unions, what other outcome could be reasonably expected other than structured and legalised corruption.
We have achieved nothing almost in 20 years of constant reform and are about to take a giant step backwards.
Over to you Mr Jones, try not to smirk at the press conference.
Compare the Pair
Industry Super Funds = biggest receiver of Superannuation Sales Commissions.
Industry Super going to increase Super Sales Commissions by at least 3 times with Labor Govt approval.
Industry Super = HIDDEN Super COMMISSIONS, no disclosure.
Industry Super = Hidden Commissions mostly for No Service.
Industry Super = No consent required for Commissions charged.
Industry Super = No Opt out of Hidden Commissions.
Industry Super sales advice via uneducated, unqualified back packers.
V’s
Real Advisers banned from charging Super Commissions.
Real Advisers left chasing annual Fee Consent paperwork.
Real Advisers (mostly) with real qualifications and education.
Yet another Real Adviser total stitch up.
Long live vertically integrated corrupt Union Super !!!