ASFA was responding to comments made on Tuesday, by Financial Services Minister and Assistant Treasurer Stephen Jones who said he is looking at superannuation funds as a “likely candidate” to plug the advice gap as there aren’t enough financial advisers to give the right kind of advice.
“I’m looking at this and I’m working out how can we get more advisers into the industry, but also how can we get more information and advice?” he said in an interview with ABC Radio.
“I’m looking at superannuation funds as a likely candidate.”
He continued that Australians should be able to pick up the phone and ring their fund to ask for simple advice such as whether they have enough super for retirement, and how that interacts with their pension.
ASFA Deputy CEO Glen McCrea said the suggested reforms from Mr Jones will improve access to financial advice and retirement outcomes as well as increase the efficiency, cost-effectiveness, and consumer experience of advice.
He said the reforms will mean that superannuation funds can provide more relevant advice to members in the lead-up to and during retirement, and that trustees will now have discretion in how they charge for the advice provided to their members to improve cost-effectiveness and access to advice for all members.
“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,” he said.
“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.
Mr Jones blamed “layer after layer” of “well-meaning regulation” for “protecting consumers from good advice”.
“There’s just not enough people and not enough avenues to get the advice, and that’s what my job is to fix,” he said.
