The Association of Superannuation Funds of Australia (ASFA) recently conducted a survey of superannuation funds on the provision of financial advice, the results of which were released yesterday.
Twenty-five funds were surveyed in the last quarter of 2012/2013 and the first quarter of 2013/2014, including 19 from the industry funds sector along with six from the corporate, retail and public sectors.
The average minimum fee for general advice from an industry fund was $220, while the fee for full personal advice was $1,190. For the other funds surveyed, the minimum fees were around 50 per cent higher in each case.
“Industry funds typically charge a flat fee for scaled advice, while for personal advice the fee is based on the amount of time involved for the planner in delivering the advice and/or a flat rate,” said the report.
For other funds in the survey, flat-rate fees dominated for the provision of scaled advice, but there was also use of a percentage of account-based fees, said ASFA.
When it came to full personal advice, the survey found that the fees were a mixture of asset-based and fees related to the time spent by the planner in providing the advice.
The median cost per member per year for advice is $2.81, while the average cost is $9.65, according to the report.
Ninety per cent of the funds surveyed hold an Australian Financial Services Licence, and all of the funds provide general advice to their members.
Seventy-five per cent of funds provide scaled advice to their members, and full service personal advice is provided by 85 per cent of the funds surveyed.
Eighty-seven per cent of the cost of scaled advice is covered by the general administration fee or a combination of the general administration fee and a specific charge, ASFA said.
