Super funds are cautiously building out their advice offerings module by module in response to member demand, despite a lack of clarity around scaled advice.
AV Super has expanded its in-house financial advice service to include income-stream products.
Chief executive of AV Super Michelle Griffiths said that due to high demand for further advice services from members, it had assessed the best way to deliver holistic advice.
The income-stream products module was rolled out prior to regulatory changes due to member demand, but the fund plans to stagger the rollout of further advice modules, Griffiths said.
"We didn't want to hold off on this because of member demand. Members told us loudly and very, very clearly that they liked our intrafund advice service and they wanted to see that expanded – not just to income streams, we'll be looking to other things in the future, but they're a fair way off," she said.
Griffiths said although members liked to get advice from the fund rather than a third party, it would re-assess the delivery of other advice modules to determine whether or not to offer further services under its financial advice licence.
Energy Super chief executive Robyn Petrou said the fund had seen a huge uptick in members' demand for advice. Demand for single-issue advice had tripled since its introduction 12 months ago, while demand for holistic advice had doubled in the past 12 months.
She said members were previously calling about investment options, but since the fund had bolstered its insurance offerings, the two categories of enquiry were running on par. The fund introduced contributions strategies over the year and these were also gaining traction, she said.
Petrou said the fund was holding back on further advice modules due to a lack of clarity around scaled advice.
Griffiths said that as demographics changed and member awareness increased, other funds would follow suit in expanding advice offerings.
