Industry groups create ROA template for early super access
A record of advice (ROA) template for people looking to gain early access to their superannuation due to the COVID-19 pandemic has been created for members of the Financial Planning Association (FPA), the SMSF Association (SMSFA), Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia and the Institute of Public Accountants (IPA).
The template was designed to be given to a client who was a citizen or permanent resident of Australian or New Zealand, and had their employment impacted by COVID-19.
The ROA template noted it was also only limited to the request for advice on the early release of super.
The template said advice that could be given to a client included:
- If you can and should access money from superannuation to assist you in meeting day-to-day requirements;
- The maximum amount you can access, and when it can be accessed;
- How much you should withdraw, having regard to your current financial position;
- The tax impact of the withdrawal from superannuation under the Government’s assistance program; and
- The impact of the withdrawal(s) on the future balance of your superannuation, insurance and your longer term goals.
The advice given by the financial advisers, the template said, had considered cash savings available and assessed that the amount could not cover living expenses due to issues risen from the pandemic.
It noted that fees for the advice were based on a fee-for-service model and would cost $300 per person.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
