Recent Future of Financial Advice (FOFA) and Stronger Super reform changes create an opening in the market to meet growing demand for ‘simple’ advice.
At the 2012 Association of Superannuation Funds (ASFA) National Conference held in Sydney, Mercer financial advice leader, Jo-Anne Bloch, told delegates the industry’s typical delivery of complex and undiluted advice has put off consumers.
“FOFA and Stronger Super will be game changers. In particular intra-fund advice is going to be a game changer,” Ms Bloch said.
“I understand that the [recent] changes and definition in Tranche Three will make it a lot easier for superannuation trustees to start delivering simple superannuation advice as long as it meets the sole purpose test.
“I do believe there will be an enormous opportunity as a result of FOFA to give simple, basic superannuation advice to get people on their way,” she said.
Yellow Brick Road chief executive, Matt Lawler, also told delegates at the conference the demand for simple advice has been accentuated by past uncertainty concerning reform changes.
“I think everyone would agree that clients sometimes go, ‘oh it’s all too hard and it’s changed again’ and that has definitely happened. Simplifying things would be great,” Mr Lawler said.
“There is a bit of that attitude in people’s minds. However, it still is the best available option for people in that position,” he said.
He also explained that the superannuation changes had the potential to be much more catastrophic for members.
“But also it was good to see that the meddling in superannuation that could have happened with getting the budget into surplus, was backed off and brought it down quite a bit,” he said.
