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ASFA rejects intra-fund advice concerns
The Association of Superannuation Funds of Australia (ASFA) has disputed claims made by Financial Services Council (FSC) chief executive John Brogden that expanded intra-fund advice would dilute the quality of advice received by Australians.
ASFA chief executive Pauling Vamos agreed with much of what Brogden presented and also supported a level playing field, but pointed out that the minimum licensing requirements for super funds providing full, scaled intra-fund advice under RG 146 were no less than those that applied to other planners.
In a speech outlining the FSC's position on proposed Future of Financial Advice (FoFA) reforms, Brogden said that expanded intra-funds advice was a poor substitute for the tailored, quality financial advice Australians need.
"Expanded intra-fund advice will be delivered by super funds on matters like transition to retirement and social security - areas that are far beyond the duties and expertise of super fund trustees," Brogden said.
But Vamos said that constant references around advice provided by super fund trustees being less qualified than other financial planners were incorrect. Most funds employ fully qualified financial planners, she said.
"We support the professionalisation of the industry but we also support the delivery of scaled advice in a cost effective manner to all members of funds," Vamos said.
"The most significant outcome from FoFA has to be the regulatory framework around scaled advice."
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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