Shorten announces exclusions to intra-fund financial advice
The Minister for Financial Services and Superannuation, Bill Shorten, has announced a number of topics that will not be permitted in intra-fund financial advice.
The move comes as the Government moves to reduce the regulatory barriers to intra-fund financial advice, which will include the removal of the opt-in provision from 'simple' or scaled advice - although it will be subject to the 'best interests' duties.
Intra-fund financial advice can cover any general advice or personal advice that is listed under the sole-purpose test. However, certain types of advice will be excluded.
Financial advice that relates to whether or not a member should consolidate their accounts will not be allowed in intra-fund advice.
Additionally, financial advice that a member switch out of the superannuation fund and into another will be excluded - unless the advice relates to moving the member out of an accumulation product and into a retirement product with the same registrable superannuation entity.
Financial advice that contains recommendations about financial products that the member holds outside of superannuation will not be allowed.
Finally, financial advice in relation to investment choice outside of the trustee-prescribed investment options will also be excluded.
Shorten also announced that the Australian Securities and Investments Commission guidance on scaled advice would be updated in light of the Future of Financial Advice legislation being introduced to parliament recently.
"The delivery of scaled advice is critical to achieving the Government's objectives of promoting greater access to financial advice. This Government is committed to providing advisers with certainty on how to provide this form of advice in a way that meets their regulatory obligations," Shorten said.
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