Members of corporate superannuation fund Westscheme will soon have direct access to a scaled-down version of CARM’s GPS financial planning software, recently badged by AMP Financial Planning as TurningPoint.
CARM chief executive Matthew Lock said the 137,000-member superannuation fund was in the final stages of testing GPS Lite, which will allow its members to prepare a high level financial ‘roadmap’ without the assistance of a financial adviser.
Lock said CARM was targeting corporate and industry superannuation funds with GPS Lite and expected to complete negotiations with another large superannuation fund for use of the system within the next few weeks.
The ‘Lite’ version of the system produces the same output graphs as the full product, but is based on a simplified calculator.
Lock said the system would fall under the generic category of calculators according to the Australian Securities and Investment Commission’s guidelines on financial calculators, so super funds could offer the tool without holding a financial services licence.
He said a more comprehensive self-service lifestyle planning tool called C2MyFinance will be available. It features the same functions as the full GPS tool but uses simplified language and detailed online help. This will be offered direct to Westscheme members in the new year for an annual subscription fee of $199.
Based on the experiences of a joint venture between US firms Vanguard and Financial Engines, which offered a similar do-it-yourself planning option to members of 401K funds in the US, Lock said CARM was expecting around 5 per cent of Westscheme members who use GPS Lite to move on to C2MyFinances.
“[Vanguard and Financial Engines] had a 5 per cent strike rate and we think we can get a similar result,” he said.
The company has also recently received approval for an export development grant from Austrade, which Lock said would help the company distribute its products in Canada, the United Kingdom and the US.
Dealer groups Count and Professional Investment Services are also CARM customers, with advisers given access to the GPS solution.
