Aware Super has confirmed it is currently undergoing a consultation around the structure of its advice team, which group executive for advice, Sarah Foreman, has said “regrettably … will result in some roles being made redundant”.
However, the fund has disputed reporting from The Australian Financial Review, which projected that up to 90 advisers were set to lose their jobs as a consequence.
“The changes impact the broader financial advice team which includes planning, customer service and specialist roles,” Ms Foreman said.
“Until this consultation period is finalised we cannot confirm the final impact of the changes. As part of this we are also working hard to investigate potential redeployment opportunities for impacted team members.
“On that basis, the number of impacted roles quoted in previous media reports is wrong and we expect the impact on planning roles to be significantly less by the conclusion of the consultation period.”
Aware Super had 190 advisers employed during the 2020 financial year, with total employment costs of $26 million. The number was a slight drop on the 217 advisers it had in FY19, with costs of $28 million.
However, the organisation has merged with two other funds since, having also copped a lawsuit from ASIC over the StatePlus advice business, for charging more than 36,000 members fees for no service. Aware Super merged with StatePlus in 2016.
Ms Foreman reported the new advice changes are being rolled out as a response to member demand, which the fund has seen shift away from ongoing advice contracts, towards on-demand advice.
Clients have pivoted towards advice specific to a topic with a one-off fee as well as free digital advice. The digital segment has grown from zero to more than 35,000 interactions during the last year.
“… With that in mind it’s clear that the old model simply isn’t sustainable,” Ms Foreman explained.
“As a profit-to-member fund we’re doing the right thing by managing this proactively – including through the ongoing review of our advice business and where our offices are located to ensure it reflects member demand.”
Aware Super had expanded access to its intrafund advice to more members, which is still “high quality advice based on the individual needs and circumstances of that member”, Ms Foreman said.
“It’s a completely appropriate level of advice for many of our members and we’re currently recording satisfaction rates above 95 per cent so it’s clearly working for them,” Ms Foreman said.
“That’s why we have invested in this area in particular – it’s a great solution for many of our members and by growing this team we can make the service more available to more of our members.”
Aware Super is now Australia’s second-largest fund, having managed $126.4 billion for 1.1 million members at the end of June last year. It gained another 60,0000 members with the completion of its merger with WA Super in December.
The fund recently started discussions of possibly consolidating with Victorian Independent Schools Superannuation Fund (VISSF).
All aboard the Intra Fund Advice scam push.
Clearly ASIC & Industry Super are going to push everything at expanding Intra Fund Advice.
Conflicted, vertically owned advisers, selling single product sales Advice, rewarded for FUM retention and sales, ALL PAID FOR BY MASSES OF HIDDEN COMMISSIONSCHARGE TO ALL MEMBERS.
And a huge amount of those members being ripped off Fees/ Commissions For No Service.
Beyond a freaking joke is ASIC and Industry Super.
Hmmm. Wouldn’t mind betting that the heads that roll perhaps suggested other funds or strategies.
You cannot simply change your fee model due to fee for no service issues, and turn around and say that change is due to Consumer demand. Sorry that change is due to a change in legislation, management policy and a business decision. Telling porkies here…. Seems like they’ve got some cultural issues going on.
Seems like ASIC have helped push them towards more hidden commissions / sales via Intra Fund Advice. BAM, no more FDS required, no service required, just debit bigger hidden commissions to all members.
Case closed, ASIC happy with Industry Super.
I wondered why as an IFA, that recently Aware are providing much better response times after 15 painful years of hold music, third party authority blocks with stupid rules and info hoop jumping for our “mutual clients” and inaction over FFNS complaints we made back in 2014 (StatePlus). Latest Aware Super rule is that the authority has to list an adviser’s personal name in email if you want something emailed to you!!
Another one bites the dust! Ms Foreman should sell the advisers as they are hot property in the market
At least give them the option of buying their books of clients as opposed to running the business into the ground!
I pitty the advisers but ASIC needs to further investigation into this firm. Fee for no service and then using First State Super members own hard earned money, to buy StateSuper by issuing bonds and then writing them off and zero compensation to investors…..What next? Now there pushing clients that would rightly need an ongoing relationship into a model that is suited to their own needs, is the same approach that Storm used. A one size fee model does not suit all and is not in the best interest of the person.For some yes but not all. There client pipeline is like a Sydney dam during a flood. It’s bursting, and to just continually charge $3,000 plus and then say next customer please, and say Sayonara to certain clients, that genuinely need an ongoing relationship is just wrong. Is it not in the clients best interest to turn them away, and let them get great “ongoing” advice?
The planners there must meet minimum appt targets of 140 approx. per 6 months with no cap on ongoing clients (along with other $ and conversion based metrics). They have done away with ongoing advice for any new clients and now only offer a fee for service ‘on demand’ type of advice. Stress related exits are high.
Aware now offer for external advisers to sign up to be able to provide advice to members. This was slipped through without staff in the advice business at Aware knowing. They should all be wary of their jobs. AussieSuper offer the same model which removes the burden of cost of trying to run an advice business.
Union super funds have learned that the easiest way to give advice is by having their unlicensed sales reps and call centre staff do it. That way there’s no need to comply with BID or FASEA or provide any documentation. It’s as simple as “Our fund is much better than your other super fund because we don’t pay commissions, so let me help you transfer it all over “.
That’s the real reason so many union super funds are cutting back their licensed adviser numbers.
You should see what Industry Fund seminar’s get away with. They give a GA warning at the start of the seminar, but if I said what they say to clients, I would be in breach. How can they get away with this?
“……ongoing review of our advice business and where our offices are located to ensure it reflects member demand.”
So if the “Advice business is paid for by the Fund, I wonder which fund this “Advice business” recommends?