The Royal Commission has recommended that the deduction of any advice fee other than intra-fund advice from a MySuper account should be prohibited, while their deduction from choice accounts should also be limited.
Specifically, Commissioner Kenneth Hayne said deductions should be prohibited from choice accounts unless the requirements about annual renewal, prior written identification of service, and provision of the client’s express written authority (which the Commissioner recommended elsewhere in the report be required annually for ongoing fee arrangements) were met.
Hayne said that using superannuation money to pay for the sort of broad advice that was being charged for was not consistent with the sole purpose test prescribed by section 62 of the Superannuation Industry (Supervision) Act 1993, which required trustees to ensure that the fund is managed solely for identified purposes.
“It follows that the nature of the advice that may properly be paid for from a superannuation account is limited to advice about particular actual or intended superannuation investments,” Hayne found.
“This may include such matters as consolidation of superannuation accounts, selection of superannuation funds or products, or asset allocations within a fund. It would not include broad advice on how the member might best provide for their retirement or maximise their wealth generally.
“Any practice by trustees of allowing fees for these latter kinds of financial advice to be deducted from superannuation accounts must end.”
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Ok, but sole purpose test wasn't relevant for ISA to run political campaigns with member's funds? Hypocritical much, Haynes?
Intra fund exemption is very handy for Industry Super Funds.....just a trailing commission by another name
"Hayne said that using superannuation money to pay for the sort of broad advice that was being charged for was not consistent with the sole purpose test prescribed by section 62 of the Superannuation Industry (Supervision) Act 1993, which required trustees to ensure that the fund is managed solely for identified purposes."
If he speifically included UNION CONTROLLED INDUSTRY FUNDS in this he would be believable. But no! He is OK that such Funds will continue to divert Members' money from what it was contributed for, towards UNIONS who wiil use it to FUND LABOR'S ELECTION CAMPAIGNS THIS YEAR. But that is OK implies Mr HAYNE.
Whose side is he on?????? The Members or the Labor Unions.
What a travesty of injustice this repot apparently is as we delve into it.
How many people can afford to pay out of their Static Wages (which barely cover their every day life needs), for up front or ongoing Financial Advice? Might be all right for Superannuated ex legal people or high flying corporate Execs in the Finance Industry, or for Political Lobbyists, or past Politicians, but really, Mr HAYNE, please come down to earth. And Mr Frydenberg, wake up to this faulty advice.
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