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Ban unsolicited telephone super sales says AFA
The sale of superannuation products via unsolicited telephone contact should be banned alongside the sale of insurance products, according to the Association of Financial Advisers (AFA).
The AFA has used a submission to the Australian Securities and Investments Commission (ASIC) dealing with proposed new anti-hawking provisions to pointed out that the Royal Commission had proposed a ban on the unsolicited sale of both insurance and superannuation.
“We support these proposals,” the AFA submission said.
“More broadly, we believe that the acquisition of financial products should be on the basis of financial advice or otherwise be client-initiated.”
The submission said the AFA was also very aware of the risk of consumer detriment where the needs and circumstances of the client are not adequately considered.
“For this reason, we think that there should be broad restrictions on unsolicited telephone sales of financial products,” it said.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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