Limit intra-fund advice – ASFA
The Association of Superannuation Funds of Australia (ASFA) has told the Federal Government it believes that intra-fund advice should be limited to simple personal advice to a superannuation fund member in relation to their current superannuation account.
The association said that it would therefore exclude any advice interactions that would involve comparing superannuation with other financial products being considered by the member.
It cited as an example the decision as to whether a lump sum in the member’s possession would be better deployed to retire debt than as a post tax super contribution.
The ASFA submission to the Financial Services Working Group said that the subject scope of intra-fund advice should be limited to advice on contribution strategies, the level and type of intra-fund insurance cover, investment options, spousal contributions and binding nominations.
The submission went on to suggest that superannuation funds should be able to apply for financial services licensing to provide ‘personal advice limited to intra-fund advice’.
The ASFA submission said that advice recommending the consolidation of small accounts was not ‘intra-fund advice’ but where the total of all of the member’s superannuation accounts was under $15,000, consolidation advice should be able to be documented in a record of advice.
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