The Association of Superannuation Funds of Australia (ASFA) commends the Government’s commitment to help ensure Australians with superannuation have access to appropriate financial advice.
The Financial Sector Reform (Hayne Royal Commission Response No. 2) Bill 2020 (FSR No. 2 Bill) introduced into Parliament today allows fees for financial product advice related to MySuper products to be charged to a MySuper product on a one-off basis when consumers choose to seek advice. This is consistent with the principles underpinning Commissioner Hayne’s recommendation that the invisibility of advice fees be stamped out but ensures where consumers wish to use their super savings to pay for advice on their own superannuation, they still can.
“Sadly, many Australians cannot afford to pay for financial advice out-of-pocket. However appropriate financial advice is vital for consumers to superannuation fund members as they consider financial decisions throughout their working life and into retirement.” said Deputy ASFA CEO, Glen McCrea.
As the Retirement Income Review report noted, superannuation funds are uniquely placed to provide advice and guidance to their members. There is value in Australians obtaining sound advice and guidance on how to best structure their retirement savings and income to help ensure they have a dignified retirement.
“When Australians need to make decisions that directly impact the adequacy of their retirement, it is imperative they receive advice to help them make the best decision possible,” Mr McCrea added.
“The COVID-19 pandemic has shaken the financial confidence of Australians and has highlighted the important role financial advice plays in times of uncertainty. In continuing to ensure appropriate advice fees can continue to be paid from MySuper accounts, the Government will help more Australian’s adapt to a post-COVID world.”
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.