Industry super funds want carve-out on intrafund advice
The largest organisation representing industry super funds has told the Treasury it wants the rules around the provision of intrafund advice with respect to MySuper products aligned to an announcement made by the Minister for Financial Services and Superannuation, Bill Shorten.
In a response to Treasury's exposure draft on the MySuper legislation, the Australian Institute of Superannuation Trustees (AIST) has pointed out that the scope for providing intrafund advice in the exposure draft is different, and less than that identified by Shorten in an announcement made in December 2011.
"AIST seeks that the exposure draft be amended to give effect to the Government's policy position on intrafund advice," the AIST response said.
It said that, in particular, it wanted advice about moving from an accumulation product into a retirement product offered by the same registrable superannuation entity to be allowed as intrafund advice.
The AIST said it also wants clarity around the prohibition on subsidising the cost of providing financial advice to employers.
"On the face of it, the prohibition appears to cover all financial product advice, and would stop funds from employing staff who provide assistance to employers (eg, business development managers and employer services managers)," the AIST response said.
It claimed the provision of general financial product advice to employers was a reasonable activity undertaken by super funds, and should be allowable.
"Furthermore, this prohibition could result in funds being unable to maintain policy committees (as defined by the SIS Act), or at least not be able to resource them," the AIST said.
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