The Australian Retirement Trust (ART) has backed an idea to rebrand superannuation education as professional development by fostering a new kind of relationship between super funds and employers.
The idea was put forward at a virtual employer roundtable hosted by ART, during which a panel of professionals argued that super funds should offer direct support to employers, including the provision of financial planners, to host education sessions with employees.
Speaking to ifa, ART’s Joshua van Gestel said: “As our roundtable event raised, employers are seeing the financial education and retirement preparedness of their employees as an important part of their duty of care and we see this as an important part of our partnership with them.
“Many superannuation funds offer education. However, we feel it is through partnering with employers directly that we best ensure [that] the education (and advice) is relevant, appropriate and well-targeted for their employees — complimenting broader initiatives and programs they may undertake,” Mr van Gestel said.
The panel agreed that the advice would take “a little bit of a broad-brush approach”, with those requiring further individualised advice required to make an appointment.
According to Mr Van Gestel, ART is already engaging in similar programs with businesses that use its services.
In its recent submission to the Quality of Advice Review (QAR) proposals paper, ART backed the idea that superannuation trustees, and the personal advice services they provide, should be given more flexibility.
“This is particularly important in considering the requirements of the Retirement Income Covenant and assisting members during the pre-retirement and retirement phase.”
Hence, ART said it supports the proposed removal of the s99F (collective charging arrangements) of the SIS Act because it “will make the identification of the scope of advice that can be provided much clearer”.
“Additionally, it will provide trustees with the ability to assist a consumer to implement the advice they have received and monitor that implementation, which is critical. Without the ability to monitor implementation under the current framework, Australian Retirement Trust’s experience is that some intra-fund advice today goes unimplemented, limiting the value of the advice”.
Moreover, ART said changes to the superannuation trustee obligations “facilitate members’ access to personal advice from their fund through several channels of a member’s choice — simple, more complex or referral for comprehensive advice outside the scope of the SPT [Sole Purpose Test]”.
The ability to also consider adjacent areas of retirement planning “enhances the ability to provide relevant retirement planning advice,” ART concluded.
Where are the associations in all of this, they are pathetic. Financial Advisers have/ and are going through massive regulatory stress and change. FASEA, Associations et al having been brainwashing us in to believe we are becoming a professional, because of the asymmetric nature of information between public and adviser. To make you think that advisers enjoy a monopoly like doctors, lawyers or accountants.
So we are going to make it harder for advisers and easier for large institutions to go back to the bad’ol days.
If the associations, in particular the AFA and FPA don’t see Super Funds offering advice and now this as abhorrent and their hill to die on, that don’t deserve to be an association because they can serve their members.
Absolutely been one of the agendas for a couple of years now. Just look at what IOOF did with bridges.
Ahh yes, lets have super funds providing conflicted vertically integrated advice. Brilliant idea! I can see the advice now, “we recommend you rollover to ART and take insurance through ART.”