Lonsec announced that it has included superannuation fund research on its iRate platform, making an understanding of super by advisers “no longer optional” given that they can now access research encompassing their clients’ whole-of-life needs.
The research is provided by Lonsec’s specialist superannuation product research team SuperRatings, which has provided in-depth super fund benchmarking and research for over 20 years.
To date, Lonsec said that financial advisers have lacked an end-to-end investment research solution that provides super fund research along with managed funds, equities, separately managed accounts (SMAs), listed securities, and individual super fund investment options.
The inclusion of SuperRatings research in the Lonsec platform addresses this gap, the research house said, giving advisers access to whole-of-cycle investment research that enables them to gain a full picture of their client’s portfolio while helping them address potential regulatory blind spots.
Lonsec CEO Charlie Haynes said it was critical for the advice industry to respond to the call for increased professionalism and stay ahead of the regulatory curve.
“Advisers are wary of superannuation advice becoming the next flashpoint in the ongoing push to professionalise the industry. Even well-educated and well-resourced advisers could end up in hot water if they cannot clearly show how their superannuation and investment advice is in the best interest of the client,” Hayne said.
Lonsec said its super fund research allows advisers to compare more than 600 super products across over 300 different fund characteristics based on the most extensive fund benchmarking survey conducted in the Australian market.
The aim is to make it easier for advisers to meet their best interest duty, especially when it comes to super product switching, which requires the adviser to clearly explain how the change benefits the client.
“Justifying a particular product recommendation means being able to explain how it stacks up across a wide range of criteria, such as the member servicing environment, insurance coverage and cost, and fund governance and administration,” Haynes said.
“That’s why we’ve made this research available to advisers – to make it easier for them to gain a deeper understanding of super products and to satisfy themselves, their clients and the regulators that their recommendation is the right one.”
