Conflicts blocking remuneration for corportate superannuation specialists who provide advice to individuals could be overcome by changing the client status of the employers involved from retail to wholesale, two leading fund management groups believe.
The Corporate Super Specialists' Association (CSSA) has backed the solution promoted by the Commonwealth Bank of Australia (CBA) and AMP.
With the modern award reviews occurring on default superannuation funds, Corporate Super Specialist's Association president, Douglas Latto, said a timely solution to the issue was necessary to enable advisers to be remunerated.
Latto said the CSSA was urging the Government to consider a solution suggested by the Commonwealth Bank of Australia (CBA) and AMP that would allow corporate super specialists to continue to offer their services.
"Currently, if corporate super specialists complete a tender or product selection, they will not be able to receive remuneration for the work they do because it will be considered conflicted," he said.
Under the CBA and AMP proposal employers would be viewed as wholesale and not retail clients.
"Not being a retail client means the service provided would not be conflicted," Latto said.
"Corporate super specialists would not be providing personal advice and therefore the conflict is removed."
The CSSA also called on the Government to consider proposal made by Minter Ellison to make intra-fund advice exempt from conflict remuneration, however, Latto said the CBA and AMP solution offered the best results for employees.
"Current legislation means corporate super specialists have to act in the best interests of the employer when helping them select default funds for their employees," he said.
"We believe when they prepare tenders, corporate super specialists should be acting in the best interests of the employees."
