The cost of delivering intrafund advice ran to over $1.27 million for one of Australia’s largest corporate superannuation outsourcing providers, Mercer, last year.
Mercer has provided evidence to the House of Representatives Standing Committee on Economics that the cost of intra-fund advice as $1,271,000 for the year ending 30 June, 2019, and that this averaged out to approximately $6 per member.
Mercer noted that the cost of the intrafund advice was included in the administration fees charged to members and was not a specific fee to members.
Like a number of industry funds, Mercer made clear to the parliamentary committee that it was running an out-sourced model and that it had an arrangement with a service provider for intra-fund advice to be provided to members.
“Advice fees can be paid from member accounts at the request of that member, with the proviso that the advice relates to superannuation. MSAL does not charge any other fees for advice/financial planning,” the company said.