The Australian Securities and Investments Commission (ASIC) should provide superannuation funds and advisers with a templated record of advice (RoA) for use to help reduce costs, according to the Association of Superannuation Funds of Australia (ASFA).
A key part of ASFA’s submission to the ASIC affordable advice review has pointed to the cost-saving advantages of using RoAs instead of statements of advice (SoAs) in circumstances where an RoA cost a member somewhere between $300 and $500 and where an SoA cost between $1,500 and $2,500.
In doing so, it suggested the following model:
- Advice providers can provide a RoA rather than a SoA on a limited number of advice topics, which reflect the most frequently asked questions by members.
- ASIC to provide a template RoA for advice that falls under this model to ensure consistency for members’ benefit and to help ensure compliance.
- Some of these topics may also be categorised as intra‐fund advice. It will be up to the superannuation fund to decide whether it will be provided as intra‐fund advice or not.
- Appropriate records will be kept and provided to members and regulators when required.
The ASFA submission suggested that some of the questions that could be answered through an ROA included:
- Should I stay invested as I am or move my money to a different investment option?
- My account balance has dropped, what should I do?
- How do I set up a pension account?
- Can I claim a tax deduction on my contributions?
- How much can I contribute into my superannuation?
- How do I withdraw my superannuation under compassionate grounds?
“ASIC could work with industry to design an appropriate RoA advice template,” the submission said.