Count warns on super advice
Accountancy-based financial planning dealer group Count Financial has warned against the specific subsidisation of financial advice with respect to superannuation, arguing that it risks undermining access to more comprehensive financial advice.
While welcoming suggestions that advice be made cost-effective to consumers, the Count Financial submission to the second phase of the Cooper Review has argued that it is vital to protect the status of comprehensive advice.
"It is vital that any consideration of the way advice relating to superannuation is provided to consumers protects the importance of consumers receiving comprehensive financial advice that takes into account their entire financial situation and needs," the submission said.
"We believe that if the requirements for superannuation advice were relaxed and the cost of superannuation advice were reduced (including by way of subsidy), many consumers would elect to receive advice only in relation to their superannuation, instead of receiving comprehensive advice based on their overall needs, unless there was a corresponding relaxation in requirements and reduction in cost for all financial advice."
The Count submission said while superannuation only advice might appear a worthwhile option for many consumers, there was a real danger in some situations that advice on superannuation would only provide little or no benefit above receiving no advice.
"Certainly, our view is that promoting comprehensive, appropriate advice must always be the main aim of government policy in the advice area," it said.
AUTHOR
Mike Taylor
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