Only advisers should provide detailed advice
While superannuation funds should be able to provide general financial advice to members, the provision of more detailed personal financial advice should be restricted to qualified financial planners, according to the Australian Bankers’ Association (ABA).
In a submission to the second phase of the Cooper Review, the ABA said that while, in principle, it supported the provision of accessible and affordable advice, individuals might hold assets both within and outside superannuation, and an approach that applied only to superannuation and not other investment products “is problematic and likely to have unintended consequences for members and consumers as well as the financial services industry”.
The ABA submission said advice on superannuation might not always be simple, given that it could commonly be an integral part of an individual’s wealth creation and protection requirements and featured as part of a more holistic financial plan.
It said the ABA supported the provision of general advice being provided via the member’s superannuation fund but that “personal financial advice should only be provided to members by professional financial advisers — that is, qualified, licensed advisers”.
The submission said the cost and method of payment for personal financial advice should be agreed to by the member.
AUTHOR
Mike Taylor
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