13 June 2023
Reforms to advice will improve accessibility and affordability of financial advice
The Association of Superannuation Funds of Australia (ASFA) said the Government’s announcement that they will implement reforms to improve access to and affordability of financial advice for Australians in retirement will boost retirement incomes. The proposed reforms will improve the regulatory framework so that:
- Superannuation funds can provide more relevant advice to members in the lead up to and during retirement
- Superannuation trustees have discretion in how they charge for advice provided to their members to improve cost effectiveness and access to advice for all members
- The requirement to provide a statement of advice (or record of advice) is replaced with the requirement for providers of personal advice to provide fit-for-purpose advice records which are more meaningful for consumers
“These reforms will improve access to financial advice and retirement outcomes. They will also increase the efficiency, cost-effectiveness, and consumer experience of advice,” said ASFA Deputy CEO Glen McCrea.
Superannuation fund trustees have existing obligations to act in their members’ best financial interests and a specific duty to assist members with their retirement needs. This underpins a high level of consumer protection for members receiving advice.
A September 2022 ASFA survey of superannuation funds found that the majority provided intra-fund advice and personal advice.
“Superannuation funds are well placed to deliver the financial advice that consumers want and need. This can range from relatively simple advice around a single issue such as contributions or investment options, to more holistic advice around retirement,” said Mr McCrea.
ASFA said it was encouraged the Government remains open to finding the best solutions for consumers and will consult on further potential changes.
ASFA remains committed to working with Government to implement reforms that improve the affordability and accessibility of advice for superannuation fund members, without reducing the quality of advice or level of consumer protections.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.