Cbus/FPA deal stemmed member leakage
The financial planning relationship between industry fund CBus and the Financial Planning Association (FPA) has helped stem a significant exodus of high account balance CBus members into Self Managed Superannuation Funds (SMSFs).
CBus chief executive, David Aitkin, has told a conference run by Money Management's sister organisation FST Media that prior to the arrangements with the FPA being put in place alongside other internal initiatives, his fund was facing a loss of scale in terms of both members and funds under management due to member exits.
Aitkin said the majority of those exits had been to SMSFs and provided data demonstrating that this had peaked in 2012 — 12 months before the referral relationship was established with the FPA.
He said that via the FPA/Cbus Referral Program more than 1000 high account balance members had been referred to financial planners and some $150 million had been retained by the superannuation fund.
Aitkin also acknowledged that the fund's agreement to being rated by both Lonsec and Morningstar had assisted with some financial planners has actually recommending clients into CBus.
He said that rollovers had actually tripled since 2012.
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