More funds adopt intra-fund advice
Friday, 5 February 2010 12:05pm
Super funds are racing to get the government's rubberstamp on intra-fund advice relief - with AvSuper, Plum and HESTA among those that already offer, or about to offer, the expanded advice service to their members.
AvSuper received the authorisation under ASIC's class order Intra-fund superannuation advice relief to trustees on 27 January.
What this means is that AvSuper will be able to advice members on choosing investment options within the fund, increasing voluntary contributions, buying life insurance within AvSuper and accessing super early under financial hardship rules.
"We applied for this authorisation in response to member requests for more meaningful and specific advice about AvSuper and their personal superannuation arrangements," said Michelle Griffiths, chief executive of AvSuper.
Members seeking full advice services will be referred to the fund's financial advice partner, Outlook Financial Solutions.
But AvSuper is not the only superannuation provider active in the intra-fund advice arena.
Plum Financial Services is currently working on a "graduated advice model" that incorporates intra-fund advice for members.
The new service will be rolled out in the next two months, said Dave Woodall, general manager, client and member services at Plum.
"We will have a strong focus around addressing adequacy... helping people make the right decision on investment choice...contribution and insurance levels," said Woodall.
The graduated advice model allows members to tap both intra-fund and full-advice services, based on their individual circumstances and needs.
In addition to phone-based services, advisers and members will be supported by online resources, said Woodall.
Responding to the Government's legislative changes July last year, the $13 billion HESTA Super fund previously announced it was ready to roll out such services to its members, having had an advice program in place for three years.
The legislation also enabled much shorter Statements of Advice to be written.
"HESTA's limited personal advice service is free. The new legislation will enable more members to take a more active role in their superannuation, including retirement planning and insurance," said Anne-Marie Corboy, chief executive of HESTA last year.
Early July last year, ASIC gave conditional class order relief to trustees from the requirements of section 945A of the Corporations Act. This allowed licensed trustees to give personal advice to members about their existing interest in a fund on certain limited topics.
Ruth Liew
