In the run-up to the review, advisers had stated they were concerned super funds and other financial institutions such as banks would quickly start giving advice, possibly reducing the market for financial advisers, following the changes.
In a comment about themes for super funds in 2023, the global consultancy said immediate changes following the Review’s publication would be unlikely to occur and could take years.
“Regulatory reform that may come from the Quality of Advice Review, delivered to the Government in December 2022 (but not yet public) might assist [super] trustees to deliver appropriate advice into retirement.
“But we don’t expect any recommendations to be able to be implemented quickly, with a minimum three-year timeframe likely.”
Regardless of the long timeframe, KPMG reiterated accessible and affordable advice was important for super fund members.
“Advice, amongst other things can help members choose a quality fund, set goals and develop contribution, insurance and investment strategies. Advice is also important when members move into retirement given the complex choices and specific risks that need to be considered.
“How funds provide or make accessible quality advice is difficult with the current regulatory settings, concerns about financial viability and risks of providing advice.”
Funds such as Australian Retirement Trust, AustralianSuper, HESTA and UniSuper had all submitted responses to the Review’s proposals paper earlier this year.
