Workplace super advice an opportunity

Financial advisers should explore being a designated adviser through an employer’s superannuation plan as an opportunity to grow their business, according to IOOF.

With 28,000 medium-sized businesses in Australia and new remuneration structures offered by super providers, advisers should explore workplace super as there were three key opportunities from integrating workplace super advice into their services.

It offers them scale to grow their client base as they would become the point of contact for members beyond their super needs, it would offer them a new revenue stream, and it was a way to retain business clients.

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“Most new remuneration models provide a flat fee per member model. So, for every company an adviser provides workplace super advice for, the more their business grows. What’s more, as those companies grow, so do revenue and referral opportunities,” IOOF said.

Additionally, with an IOOF study showing 28 per cent of employees surveyed saying personal financial issues were a distraction at work and nearly half spending three or more hours a week thinking about or dealing with their personal financial issues, the firm said employees also required advice.

Advisers could provide simple intra-fund advice (personal advice without doing a complete know-your-client), which would be limited to advice on super.

IOOF cited support from the Association of Superannuation Funds of Australia (ASFA) for either intra-fund or comprehensive advice through super, which in its 2016 submission to the Productivity Commission said advice provided a benefit beyond positive investment returns.

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This assumes the fund itself is in the best interests of ALL the workers in that business. Personal advice without doing a complete know your client ????? Isnt this where the industry is moving away from...its basically just carving out implied advice which of course is the product itself. So by being the designated super rep for example, you are not meeting the best interest test at all. Then if you start rolling workers out of that fund due to best interests you open a can of worms. This is just piffle from IOOF, its old school selling crap on volume with small margins that just isnt viable anymore. Its not about scale, its about quality advice , and quality clients with long term relationships.

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