The Corporate Super Specialist Alliance (CSSA) has called on the Assistant Treasurer, Arthur Sinodinos, to adopt the regulation it put forward under the Labor government to allow corporate superannuation advisers to continue to give employers and fund members advice under Future of Financial Advice (FOFA) reforms.
CSSA president Douglas Latto said the organisation had put forward submissions under the former Government to overcome conflicted remuneration provisions under FOFA which had not been finalised when the election was called.
Latto said a regulatory solution was necessary following the Australian Investment and Securities Commission's (ASIC's) rejection of the CSSA's No Action letter.
With the introduction of MySuper, employers needed access to low-cost financial advice services in order to make the right decision regarding default funds, life insurance decisions and retirement savings outcomes, according to Latto.
Without a regulatory solution, corporate super specialists would have to close up shop, he said.
"This would have devastating consequences for the funds which now enjoy a range of services at the employer level; at the policy committee/representative body level; at the individual super fund member level and at the collective member level," he said.
"Advisers have been placed in a position where it is impossible for them to avoid breaching the conflicted remuneration provisions if they provide services to both employers and employees, and this needs to be resolved in the best interests of all fund members."
