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Intra-fund advice good for planners
The move by the Federal Government to allow superannuation intra-fund advice will give the financial advice industry a "shot in the arm" by providing more potential clients for financial planners, according to Decimal managing director Jan Kolbusz.
There are early signs that the intra-fund advice order will establish a significant business model for financial advice as more Australians become exposed to financial advice, Kolbusz said.
Intra-fund advice applies to nearly every working Australian through their super fund, making the financial services industry obligated to provide limited advice to all Australians.
The provision of intra-fund advice will also drive the development of more sophisticated financial planning technology, Kolbusz said.
Current technology such as standalone calculators cannot deal with limited advice and planners needed to take up more complicated web-based technology together with a systematic approach to assess what care their clients needed.
"The entire industry must equip itself to deliver more sophisticated solutions through the life cycle of client engagement," he said.
AUTHOR
Mike Taylor
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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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