Advisers low down on the super fee ladder
Financial advisers may have been the target for a lot of criticism by superannuation funds, but the latest Australian Prudential Regulation Authority (APRA) data reveals they appear to be at the bottom of the list when it comes to who extracts the most from superannuation fund members.
New data released by the Australian Prudential Regulation Authority (APRA) has listed the big ticket fee-takers in superannuation as being administrators and fund managers followed by advisers and then insurers.
According to the APRA data covering the 12 months to the end of June, last year, superannuation represented a multi-billion dollar opportunity for those extracting fees.
It said fees paid totalled $8.5 billion for the year ended 30 June, 2020, with 91% of fees paid by members and the remaining balance largely paid by employer sponsors or from reserves.
“Administration fees in the year ended 30 June, 2020, totalled $3.6 billion, insurance fees totalled $0.1 billion, investment fees totalled $2.9 billion, advice fees totalled $0.9 billion and activity fees totalled $0.7 billion,” the APRA data revealed.
It said the remaining fees paid comprised switching fees, exit fees and other fees.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
