Choice of superannuation fund will only be effective if superannuants have access to quality and timely financial advice, according to major accounting group, Chartered Accountants ANZ (CA ANZ).
In a submission filed with the Senate Economics Legislation Committee review of the Government’s new choice of fund legislation, CA ANZ pointed out that despite the need for financial advice, ASIC research had revealed that only 27% of the Australian population had received personal financial advice.
It said despite this, many potential financial advice providers were “dissuaded from offering advice because of complex costly inefficient regulatory frameworks”.
“In addition, multiple regulatory regimes together with regulator behaviour have been forcing many professional advisers (accountants and financial advisers) to question whether they should continue to provide advisory services,” the submission said.
CA ANZ then flagged new research it had conducted which it said suggested that few people used digital platforms or robo advice, with only about 12% of consumers having heard of robo-advice.
“The main attraction of this option is that it may reduce the cost of providing advice and allow widespread access,” the submission said. “But it would appear only a minority of people would consider using this service.”
“The majority of consumers are saying they want to receive financial advice from another human beaning. This means reform of this area is essential and urgent.”