Ahead of his appearance on an ifa Live webcast with Michelle Levy on 27 April, BT Financial’s head of financial literacy and advocacy, Bryan Ashenden, spoke to ifa about the positive impact the Quality of Advice Review (QAR) will have on independent advisers.
Asked whether he believed the QAR final report clearly articulates how super funds can provide advice, Mr Ashenden outlined how super could play a major role in getting Australians ready for more comprehensive levels of advice delivered by IFAs.
“I think everyone agrees that customers and members should be able to ask simple questions. What needs to be clear is the limited scope of the advice that providers can give where it is not provided by a ‘relevant’ provider — i.e. the financial adviser. And if we get this right, it should be a success for all,” he said.
Mr Ashenden believes the scope will likely become clearer as the QAR moves beyond the consultation phase to the drafting of legislation relating to the report’s recommendations.
“What we do know is more Australians need advice, and engaging with their super fund about their retirement savings within their super is a good outcome,” he said.
“The kinds of matters that they could get advice on from their fund are increasing contributions, changing investment options within that particular fund, and the extent of cover provided by the insurance arrangements that apply to their interest in the fund, as well as the types of cover that may be suitable for them.
“Most advisers I speak to don’t see this as competition —they see it as a practicality because it isn’t really economically viable for a financial adviser to engage with a new client on these matters, even if all the recommendations were implemented. Rather, this should be seen as the incubator for future advice clients. When they see the benefits of advice, and want to engage beyond simple inquiries, the super funds will need to refer them elsewhere — to a financial adviser.”
However, a number of industry funds are already providing comprehensive advice to members.
Australian Super, Hostplus, and more than a dozen other industry funds use dealer group IFS and its 120 advisers to give advice to their members.
IFA is owned by 19 industry funds and provides advice licensing from general to comprehensive, digital advice tools and calculators, member education, advice issuance and audit, back-office technology, adviser education, paraplanning and consulting with industry funds on their financial advice needs.
“We are seeing strong growth both in the number of advisers and the volume of advice given,” IFS Group chief executive officer Csaba Baranyai said.
“We were the fastest growing advice licensee in 2022, which is very exciting. We are seeing new advisers joining us from both the IFA and retail space.”
really
Bryan Ashenden always makes sense.
Agreed. “So, you saw an union industry fund planner? Great, so you now know what not to do, let’s get you some real advice”