Cbus will extend its trial advice referral arrangement with the Financial Planning Association (FPA) into an ongoing nation-wide effort from 1 September 2014.
The shift marks an end to a trial program announced in October last year and offered to eligible members of the industry superannuation fund working with selected FPA member practices in Queensland, South Australia, Tasmania and the Northern Territory.
Financial planning practices who offered advice to Cbus members were required to add the fund to their approved product lists with the FPA requiring planners working within the trial arrangements to hold the Certified Financial Planner (CFP) designation and operating within an FPA Professional Practice.
During the trial 23 professional practices were selected to provide advice and this number would likely be increased as the arrangement becomes permanent and offered nation-wide.
FPA chief executive Mark Rantall said the permanent referral arrangement would connect more people with CFP level advice and pointed to a future advice model in which planners collaborated with member-based organisations to provide advice.
Rantall said the FPA acknowledged the efforts of Cbus and its board in moving from the trial to an ongoing arrangement while Cbus chief executive David Atkin said the arrangement was "a sound and proven initiative that represents ongoing value and benefits for our members".
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.