In a submission to ASIC regarding its consultation on promoting access to affordable advice, Industry Super Australia said one of the ways ASIC can improve the affordability of advice and remove impediments to giving scaled advice is by enhancing the usefulness of intra-fund advice.
The submission suggested that ASIC could use similar regulatory tools to the ones used for its COVID-19 measures to allow intra-fund advice on early release of super.
“If funds can give intra-fund advice about retirement adequacy including Age Pension eligibility that considers not just the member but also their household [such as their] spouse or partner and, if applicable, their dependents, this would give members greater access to affordable advice on critical topics,” the submission stated.
Industry Super Australia suggested in the submission that the intra-fund advice regime be expanded to include superannuation and Centrelink payments such as estimating Age Pension entitlements and advice which covers superannuation and non-super assets outside the fund, issues relating to the pension phase such as lump sums and allocated pensions, and transition to retirement advice.
With an ageing population, the submission noted that there is a significant number of fund members reaching the retirement phase.
“Industry funds have frequent conversations with members about when to retire, if they will have enough money on which to retire, how they can maximise Centrelink payments and how to draw down on their superannuation savings,” it stated.
“A fund member will generally think in terms of household assets when making these decisions. Funds should be able to give intra-fund advice that considers not just the member but also their household.”
It’s not intra fund advice if it covers external events. Make them give personal advice and fix the personal advice rules.
Once advice is provided on other topics and other super funds etc, how can it be called intra fund advice? Intra fund advice should be limited to just that member’s particular super fund. And any adviser should be able to provide intra fund advice with the same rules that apply to an adviser employed by a super fund.