Intrafund advice within Mercer costing $1.27 million a year



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.
Recommended for you
A Supreme Court of Western Australia jury has issued its verdict regarding unregistered MIS operator Chris Marco, who was on trial for 43 fraud charges, with ASIC stating the verdict ends a “sorry chapter”.
ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago.
Financial advice practices may be hiring younger or professional year advisers as a succession option, but they may find they are unable to put up the capital if the adviser looks to retire.
Having completed its acquisition of fixed income provider FIIG, AUSIEX believes more can be done to increase direct investment of the assets and can envisage them being made more readily available on separately managed accounts.