Extend intra-fund relief, says BT

BT Financial Group has taken the financial planning industry’s arguments on intra-fund advice to the Cooper Review of superannuation.

In a submission to the second phase of the Cooper Review, the BT submission argued that the Australian Securities and Investments Commission's class order that allows relief to superannuation funds to provide intra-fund advice should be extended to financial advisers and that such superannuation advice be tax deductible.

Releasing the details of the BT submission, the company’s chief executive, Rob Coombe, said with significant system reform, it was possible to significantly increase the retirement savings of Australians and their engagement with superannuation.

He claimed a number of steps outlined in the BT Financial Group submission had identified ways of reducing costs and passing the savings directly to investors.

“Importantly, our recommendations will see a 25 per cent reduction in operational costs, lower advice fees by unbundling commissions from products, low-cost super advice and more investor-friendly rollover processes,” Coombe said.

The central thrust of the BT Financial Group submission is consistent with a number of other submissions to the Cooper Review including the mandating of electronic transactions and common industry data standards, the use of Tax File Numbers and the introduction of tax changes and incentives to facilitate fund consolidation.