Intrafund advice provided by superannuation fund administrators will continue to act as a conduit for financial planners entering the industry, even as the new Financial Adviser Standards and Ethics Authority (FASEA) regime gets put in place.
That is the view of Link Advice leader, Duncan McPherson, who told Money Management that he sees intra-fund advice provided by superannuation fund administrators such as Link continuing to bridge the gap which exists before members seek out face-to-face holistic advice.
“It is part of the answer to how you make advice more accessible and affordable,” he said.
Asked about the impact on the FASEA regime on intrafund advice, McPherson said he believed firms such as Link Advice should be regarded as an incubator for financial advisers entering the industry and ultimately moving up to become face-to-face advisers.
He said many of the people employed by Link to provide intra-fund advice were at university pursuing degree qualifications and that their involvement with clients over the phone and digitally was providing them with invaluable soft skills.
McPherson said he believed intrafund advice would continue to have its place in the FASEA environment acting as a bridge for those people who needed advice but were not looking for the cost or the engagement entailed in face-to-face advice.
Comments
Advice is advice, regardless if you're an IFA or an ISA sales rep/adviser. We should all be under the same obligations, requirements and expectations. Certainly the greater general public believe the advice they get from ISA sales people/advisers is actual real advice, so why shouldn't the public be afforded the same safety checks and requirements to be met by that brand of advice as any other?
Its amazing how these funds are going back to the bad old days of Tied Agency sales forces. Just appalling. And a few major fund managers are slowly waking up to the fact how bad this is for investment competition.
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