Early release super – speak to a planner first says FPA

1 April 2020

Superannuation fund members need to seek financial advice before withdrawing up to $20,000 from their accounts, according to the Financial Planning Association (FPA).

In a statement issued today, the FPA said that while it supported the Government’s hardship early access measure, members needed to follow the strict conditions imposed by the Government.

FPA chief executive, Dante De Gori, said superannuation access should be used as a last resort.

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“It is to be used to fund retirement and its primary purpose must be respected, even in these increasingly uncertain times,” he said. “The access is only available for people who are unemployed, have had their working hours/business income reduced by 20% or are on Centrelink payments.”

He said the FPA recommended that any individual who met the requirements consider whether using retirement savings was the best option for them and to consider all alternate options before they do use their super.

“If you have a financial planner you should speak to them first about how to manage your financial situation at this time. If you do not have a financial planner then you should consider contacting an FPA member to assist you,” De Gori said.

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Yeah right, so someone is going to pay $3k+ for me to put together a compliant SOA that also meets the FASEA code for advice on whether they should access their $10k from super. They should just ring their industry super fund for intra-fund advice...which as we learnt from the Royal Commission is always provided to perfection.

Speaking to a financial planner is good advice for those people who already have a flexible ongoing service agreement in place with a planner. But it's a total waste of time for those that don't. The regulatory driven costs and complexities associated with onboarding a new client would defeat the purpose of it.

The government is trying to impose even more regulatory cost and complexity on advisers, which will severely impact their ability to provide the sort of flexible ongoing service arrangements which have proven so beneficial to consumers in the current circumstances. Jane Hume said yesterday there would be no let up or reconsideration of this regulatory onslaught, in spite of the obvious negative impact it has on consumers. It seems that the government's adviser persecution agenda overrides all other considerations.

Dante and Ben Marshan, exactly what planet are you both on? No Financial Planner can assist those people who might now need to withdraw $10,000 *2 from their super because they are out of work - if they need the money they simply can not afford the advice it is that simple and you should step outside of your tower and salaries and understand this. Ben in particular it seems from his comments is a big fan of "Intra Fund Advice" so I suggest if those people can't get advice they need under General Advice (all paid for by an ongoing fee) then not my problem - it is a problem only for those that can not afford advice. Well done - and I guess this is how Dante justified his pay rise?
And this is the FPA vision of a Profession? Great.

I think old mate Dante just give the industry another black eye, So a person who is unemployed and struggling to make ends meet comes to see me on Dante's great recommendation. I charge them X amount of dollars and probably 3 separate meetings with probably a 3 week delay to get a compliant factind, SOA etc. Then the client comes in for their presentation and my advice is not to do it and that is going to cost you X. That client then tells their family and friends how this idiot Financial Planner wasted their time and money and never waste your time going to see one. Thanks Dante you bloody legend!

but what you are doing is the requirement of the current law. and the lawmakers have made it clear this isn't going to change, in fact, it is going to be a comedy of errors going forward.

the accountants many of whom have been on quite the high perch judging us about our $5,000 useless SoA's (with graphs and charts) are now getting acquainted with the terms of an AFSL license and regretting they ever got a limited license and handing it back in droves and complaining about an "unworkable regime".

the fact that three of the largest accounting bodies have come together to say so is evidence of this fact. they even combined to make a cute video see https://www.youtube.com/watch?v=goffxXy4wP4

you are not an idiot, I am not the idiot. the lawmakers are.

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