POWERED BY MOMENTUM MEDIA
Aware Super calls for clear list of advisable topics
Aware Super has urged the Quality of Advice Review to explore the clarification of the scope of advice that can be collectively charged by superannuation trustees.
In its submission to the review, the super fund recommended the provision of a clear and expanded list of topics that fund can advise on and the explicit allowance of advice to be provided on an ongoing basis where the cost to serve was negligible such as through digital tools.
Aware Super argued in favour of intra-fund advice as the “only viable way to deliver accessible, affordable and high-quality advice to superannuation members at scale” but said there was a lack of clarity on the scope of advice.
“Trustees would like to continue to invest in services and provide more advice under intra-fund provisions, however there is a lack of clarity on the scope of advice which often leads trustees to take an overly cautious approach, limiting the help that can be provided before members must pay the cost of advice,” it said.
“For example, an internal review of the offerings of several funds, undertaken in 2021, noted a significant variation in the topics covered, with funds appearing to have differing views on whether issues such as Centrelink entitlement advice could be covered under the model.”
“At a minimum, it is necessary to clarify and broaden the topics that can be covered under intra-fund advice. For example, retirement topics including Centrelink eligibility and retirement budgeting should be specifically included in the advice able to be collectively charged by trustees.”
Rather than stopping at expanding or clarifying the list of topics considered in scope for intra-fund advice, Aware Super posited it would be useful for the review to conside the role of superannuation trustees more broadly in providing help, guidance, and advice to members.
“For example, current restrictions on collectively charged advice currently do not allow for any advice that may be ongoing – that is, any recommendation likely to require review.
“While we understand the desire for regular ongoing advice to not be collectively charged, as this would not be an appropriate cross-subsidisation, this restriction is less relevant for forms of advice that do not carry material per-use costs, such as digital advice.
“Given the potential to improve member outcomes, digital tools should be explicitly allowed to be integrated into a collectively-charged model in a way that encourages repeated use and check-ins by members to ensure their needs are still being met.”
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
