Several major Australian superannuation funds have projects underway to deliver personal financial advice to millions of members on a mass scale.
Industry Super Network project manager Robbie Campo is working on a proposal to give super funds relief from financial services reform to enable them to give advice.
“A vast gulf exists between general advice and full financial advice, particularly for the average consumer whose superannuation account balance has five numbers in it, not six or seven,” Campo told the Conference of Major Superannuation Funds in Brisbane yesterday.
Advice must be provided on behalf of the super fund’s trustee to members in relation to products they already hold, according to Campo’s proposal.
There must be a reasonable basis for advice and the super funds would be subject to the fiduciary duty to act in members’ best interests, she said.
The advice would be limited to straightforward queries such as trustee directed investment options, contributions, co-contributions, salary sacrifice and insurance.
Payment would be fee-for-service and made from the member’s account or paid directly.
Alternatively, the costs could be absorbed by the trustee as part of a member benefits scheme.
