ISA lobbies ASIC to expand role of intra-fund advice
Industry Super Australia has urged ASIC to use its regulatory tools to enable superannuation funds to provide intra-fund advice about retirement adequacy including Age Pension eligibility for both members and others in their household.
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.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.