New figures from Wealth Data have revealed total superannuation assets per adviser have increased significantly since Q4 2018, from $88 million to $245 million in the most recent quarter.
The increase in percentage terms is edging slowly to 300 per cent, Wealth Data pointed out.
Earlier this year, the research firm said superannuation funds lost 5.17 per cent of their adviser cohort in 2023.
Funds kicked off the year with a total of 754 advisers, which dropped by 39 to 715 as at 31 December.
This came as a surprise given the government’s perceived leniency towards superannuation funds, with the announcement last year that the government intends to create a new class of financial advice providers.
The advice community is anticipating the release of the next stream of the Delivering Better Financial Outcomes reforms later this year, which should reveal when and how superannuation funds, banks, and insurers will gain the ability to give customers personal advice.
While it essentially unwinds some of the tough rules imposed by the Hayne royal commission, the proposal is expected to disallow this new class of advisers to charge a fee or receive a commission relating to the advice they provide.
“We must give consumers what they actually need,” Financial Services Minister Stephen Jones said last year.
He also assured that the government intends to establish safeguards by ensuring the new class of financial advice providers meets additional standards that were not originally recommended by the Quality of Advice Review.
However, it’s interesting to see that while funds are said to be overjoyed with the government’s decisions, in 2023, they shed a substantial number of advisers. They are, however, said to be working on personalised digital advice tools for members that do not currently have a financial adviser.
CFS launches tool
Colonial First State (CFS) shared with ifa that it has already launched its own tool, with members said to have access to Otivo’s personalised digital advice in relation to their CFS FirstChoice investment options, contribution strategy and insurance arrangements at a cost of $88 per annum – deducted from their super account.
Colonial First State Superannuation CEO Kelly Power said: “Our CFS guidance centre team receive thousands of calls a month from members looking for guidance and help about their superannuation.
“There is a clear demand for more guidance and advice and for interactive tools to allow members to better understand their circumstances and take action as they seek to remain on track with their goals. Our partnership with Otivo will give members the option to access personalised digital advice on three topics they often seek the most help with: investment options, contributions and insurance levels.”
Power also pointed to CFS research that shows almost two in three Australians under 40 are open to a digital advice solution.
“We know that Australians who receive advice are far more confident and significantly more positive about their financial position than those who are unable to access advice,” Power said
