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.
Recommended for you
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
AllianceBernstein has announced its chief investment officer and Australian equity manager Roy Maslen is to step down from the firm at the end of the year.
Pinnacle Investment Management has announced it plans to launch a new affiliate from a global equities team departing Royal London Asset Management.
Asset manager Nuveen is seeing opportunity in municipal bonds which are at their highest yields in over a decade.