Intra-fund provision will drive expansion of planning industry
The move by the Federal Government to allow superannuation intra-fund advice will give the financial advice industry a “shot in the arm” by providing more potential clients for financial planners, according to Decimal managing director Jan Kolbusz.
There are early signs that the intra-fund advice order will establish a significant business model for financial advice as more Australians become exposed to financial advice, Kolbusz said.
Intra-fund advice applies to nearly every working Australian through their super fund, making the financial services industry obligated to provide limited advice to all Australians.
The provision of intra-fund advice will also drive the development of more sophisticated financial planning technology, Kolbusz said.
Current technology such as stand-alone calculators cannot deal with limited advice, and planners needed to take up more complicated web-based technology together with a systematic approach to assessing what care their clients needed.
“The entire industry must equip itself to deliver more sophisticated solutions through the life cycle of client engagement,” he said.
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