TheNational Council of Financial Adviser Associations(NCFAA), the peak body for adviser associations, has criticised dealer groups for the lack of industry superannuation funds included on recommended product lists.
The NCFAA is aiming to have dealer groups add industry funds to their lists and ensure advisers are not being restricted in the financial advice they can give.
NCFAA chairman Steven Bruce says there are a number of dealers in the market that don’t include industry funds and in doing so, planners are exposed to the risk of giving poor financial advice.
“There’s a huge gap in advice. It’s a gap where planners are at risk as they can’t give advice on an industry fund when taking into account all of the client’s details,” Bruce says.
He adds that some of the major dealers, particularly banking dealer groups, are the worst in providing access to industry funds, and will be a focus of the campaign.
Among the dealer groups of its own constituent associations, Bruce saysAXAalready has industry funds on its approved list, whileAMP Financial Planningis presently moving to have some added to its list.
The NCFAA will be focusing on educating the research staff and dealer group heads as to the risks they are taking by not providing access to industry funds.
Bruce says the move should come independent of the lower commissions being offered by industry funds, as it is about the ability of advisers to give advice on a product that sits under the existing superannuation regime.
