Aware Super chief executive officer (CEO) Deanne Stewart has warmly welcomed the final report of Michelle Levy’s Quality of Advice Review (QAR) released this week.
Among the 22 recommendations made in the 267-page report, one suggests that super funds should be allowed to provide personal advice to their members about their interests in the fund, including when they are transitioning to retirement.
“The financial advice our members want from us is not always complex or comprehensive, yet under the current rules, they face frustrating hurdles that block them from accessing the answers they seek, often at times of great need,” said Ms Stewart.
“At Aware Super, we believe a revision in the regulatory framework that allows for a change in the way advice is provided will help us best meet the needs of our members.”
In her final report, Ms Levy said that the regulatory regime must allow other advice providers to provide personal advice to consumers to increase accessibility.
“We have been told during the consultation process that, with the right regulatory framework, product issuers would like to provide more personal advice to their customers (or in the case of superannuation funds, their members),” she noted.
“They should be encouraged to provide helpful personal advice to their customers and members. The regulatory framework should therefore assist them to do so.”
According to Ms Stewart, Australians need a regulatory framework that is grounded in strong consumer protections and has the flexibility to ensure everyone can access useful, timely and relevant advice in the most effective and efficient way possible.
“It’s simply not possible for the current regulatory framework to support the amount of advice Australians need and want, in the way they want it provided,” she said.
“The Levy report provides the blueprint needed to unlock advice for all Australians and for the industry to think differently as to how to best help and advise their members.”
Additionally, the report recommends that super fund trustees should be given the power to decide how to charge members for the personal advice they provide to members and that the restrictions on collective charging of fees should be removed.
“The final report resolves the uneasy relationship between the financial advice industry and superannuation funds,” commented Blake Briggs, the CEO of the Financial Services Council (FSC).
“By expanding the range of topics on which a superannuation fund can provide advice for their members, and at the same time allowing consumers to direct their superannuation fund to pay advice fees to an independent adviser from their superannuation savings, independent reviewer Michelle Levy has put the interests of consumers first by allowing the consumer to decide who is best to provide them the advice they require.”
Ms Stewart added that it is incumbent upon Aware Super to ensure that its members, and all Australians, have access to the best possible advice to make the best decisions for their future.
“We look forward to continuing to consult with the government and other stakeholders as we all work together to protect Australians’ financial interests and ensure they have access to quality advice,” she concluded.
