In relation to the provision of financial advice through superannuation funds, the Parliamentary Secretary to the Treasurer, Bernie Ripoll, has reminded funds that the Government’s Stronger Super and MySuper reforms stipulate that funds can’t charge members collectively for financial advice, other than for intra-fund advice. Members seeking complex personal advice must bear the cost of that advice.
Recognising it’s appropriate that super funds continue to provide intra-fund advice to their members, funds will be able to charge collectively across their membership to cover the cost of that advice, Mr Ripoll said. Intra-fund advice is a type of scaled advice, defined as simple advice, provided by superannuation fund trustees to fund members in relation to their holdings. Intra-fund advice is subject to the FoFA reforms, including the “best interests” duty and ban on conflicted remuneration.
Mr Ripoll said the new rules on intra-fund advice will also mean that the cost of more complex advice provided to members cannot be spread across the general membership of the fund. This means that disengaged members will not have their retirement savings eroded by unnecessary fees. As well, in line with the Stronger Super recommendations, the Parliamentary Secretary confirmed that the Government would exempt intra-fund advice fees from the FoFA adviser charging regime.
[LTN 23, 5/2/13]