Hayne calls for end of advice fee deductions
The Royal Commission has recommended that the deduction of any advice fee other than intra-fund advice from a MySuper account should be prohibited, while their deduction from choice accounts should also be limited.
Specifically, Commissioner Kenneth Hayne said deductions should be prohibited from choice accounts unless the requirements about annual renewal, prior written identification of service, and provision of the client’s express written authority (which the Commissioner recommended elsewhere in the report be required annually for ongoing fee arrangements) were met.
Hayne said that using superannuation money to pay for the sort of broad advice that was being charged for was not consistent with the sole purpose test prescribed by section 62 of the Superannuation Industry (Supervision) Act 1993, which required trustees to ensure that the fund is managed solely for identified purposes.
“It follows that the nature of the advice that may properly be paid for from a superannuation account is limited to advice about particular actual or intended superannuation investments,” Hayne found.
“This may include such matters as consolidation of superannuation accounts, selection of superannuation funds or products, or asset allocations within a fund. It would not include broad advice on how the member might best provide for their retirement or maximise their wealth generally.
“Any practice by trustees of allowing fees for these latter kinds of financial advice to be deducted from superannuation accounts must end.”
Recommended for you
The super fund has launched Retirement Manager, a digital advice tool helping members plan income, spending, and retirement confidence with integrated support.
APRA has warned retail super trustees that financial adviser involvement in recommending platform products does not diminish their obligations, as regulators turned the spotlight on the Shield Master Fund and First Guardian Master Fund during a meeting with fund CEOs.
AMP’s chief economist has unveiled a wish list for the Australian government’s Economic Reform Roundtable.
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
