ASFA (the Association of Superannuation Funds of Australia) has made the call in a six-step plan to power productivity gains in the super industry post-COVID pandemic.
The body reported it has engaged with Treasury and the government to advocate for the changes.
The plan, which has suggested more stability in super policy, has also called for advice for the most frequently asked questions from super fund members to be given through ROAs, rather than through a SOA.
According to ASFA, an average SOA costs fund members between $1,500 to $2,500, whereas an average ROA would cost around $300 to $500.
The body’s proposed model would see advice providers being able to give ROAs on specified topics, with ASIC to provide a template for such advice, which ASFA said would ensure consistency and to help ensure compliance.
Some topics however could also be categorised as intrafund advice – it would be up to the super fund to decide whether it would be provided as intrafund advice or not.
Such of the frequently asked questions listed to be answered by ROAs were “Should I stay invested as I am or move my money to a different investment option?”, “My account balance has dropped, what should I do?”, “How do I set up a pension account”, “Can I claim a tax deduction on my contributions?” and “How much can I contribute into my superannuation?”.
ASFA chief executive Martin Fahy said in light of current economic challenges, there is a need to develop solutions for problems that will arise after coronavirus.
“This includes creating productivity gains by cutting red tape to reduce the cost burden on industries and the economy,” Dr Fahy said.
Other steps in the new six-step proposal included centralising fund data reporting to government bodies such as APRA and the ATO, making it easier for members to make voluntary contributions and to claim tax deductions, and changing default fund communications from paper to electronic.
It’s putting a band aid on a cut that needs 20 stitches
An adviser giving intra fund advice should not even need to do an ROA, especially where the asset allocation is not changing.
The sarcasm is staggering – why are you lobbying for ROA’S – you provide all that advice and more without any paperwork now.
Let’s do a poll— who has ever seen an SOA/ROA from an industry fund detailing change of investment?
I for one have never seen one in 20 years.
Last one I saw from First State, the “free” SoA disclaimed that they could not advise on any assets outside of super, nor the partners super or other assets, nor could they advise on any other alternative super fund. The advice was that the client should continue to use their fund and rollover to their pension. When the client came to me we did an analysis across a number of funds and considered their other assets and estate planning needs. There were other options with greater investment discretion and choice at a lower cost and we made strategic recommendations to structure her other assets in concert with super more tax efficiently. The client paid $5,500 for the advice and is very happy. That is what we call advice to all you F$%^N D$*#*#ds in the industry funds. Talk about lowest common denominators and conflicted advice. Wake up Liberal government, the ISF are funding your next electoral defeat.
As for ASIC, the most incompetent inefficient mob of drop kicks you could ever imagine, are busy trying to make the rest of us look as thoroughly ordinary as they are.