MySuper not precluded from financial advice

The provision of financial advice with respect to MySuper is not entirely off the agenda, according to the chairman of the Government’s Stronger Super peak consultative group, Paul Costello (pictured).

Costello has told the Conference of Major Superannuation Funds (CMSF) on the Gold Coast that while the Government’s response to the Cooper Review recommendations clearly ruled out fully-fledged financial advice with respect to MySuper, this was not necessarily the end of the issue.

He said that there was clearly a need for people to engage, and that this was something that needed to be accommodated.

Costello said that while it was clear that the costs associated with comprehensive advice could not be included in any MySuper product, this does not prevent members acting on their own behalf.

He said that the advice issue was therefore not at end with respect to MySuper

“It is a subtle process to calibrate but we are working on that,” Costello said.

The peak consultative group chairman had earlier warned CMSF delegates that they should not allow themselves to be distracted by the cost-saving elements of MySuper, but on returns.

“Do not fall into the trap of delivering the lowest cost product – that would be inconsistent with value for money,” he said.