A spokesperson for MLC-owned super trustee NULIS Nominees told ifa the group “intends to explore opportunities to enhance its intra-fund advice offering and the channels through which it is delivered”.
The comments come following previous Nine/Fairfax Media reporting that the group had confirmed to a parliamentary committee that it was mulling an expansion of intra-fund advice.
Previous House economics committee documents reveal that NULIS, which is due to be sold along with the broader MLC business as it separates from NAB later this year, spent around $2.8 million, or $2.62 per customer, on intra-fund advice in the 2019 financial year.
“NULIS engages an external advice licensee who are part of the NAB group and a related party to NULIS to provide intra-fund advice via online digital tools to members,” the documents state.
“The cost of these services is paid for by NULIS out of fee revenue and are not additional costs to members.”
NULIS added that because intra-fund advice is currently only offered through digital tools, no bonuses are paid to advisers, nor are advisers employed directly by NULIS for provision of intra-fund advice.
However, the spokesperson said the trustee “recognises that phone-based/face-to-face intra-fund advice is an important aspect in helping super members access specific advice at a reasonable cost”.
The spokesperson added that there were regulatory issues around the provision of intra-fund advice that the trustee would need to consider along with any expansion.
“Clearer regulatory definition of the scope of intra-fund advice with a clear distinction between general advice and comprehensive personal advice would support enhanced intra-fund advice offerings to members,” the spokesperson said.
It’s very simple. Intrafund advisers are essentially the new market reps for Corporate Super, who don’t have to obtain informed consent or any other red tape paperwork from millions of fund members, to receive their juicy salaries & BONUSES. The fact that their salaries is effectively THEFT from millions of members who never receive this advice, seems to escape the attention ASIC & the Minister for Superannuation.
So true. but they would argue that they are just blugging the advice gap….that 1) they created. 2) helped to create by blaming individual planners for their sins.
Interesting wording from the spokesperson… “a clear distinction between [b]general advice[/b][b][/b][i][/i][i][/i] and [b]comprehensive personal advice[/b][b][/b][i][/i][i][/i]”. Intrafund advice is actually neither of these things. It is limited scope personal advice.
Super funds are trying to portray all intrafund advice as general advice, because it is not comprehensive. However any advice that could be perceived to take the client’s circumstances into account is always personal, regardless of scope.
The reason super funds are doing this is because they have an exemption to give general advice via their non licensed employees. This allows them to give financial advice via sales staff who are completely untrained, unlicensed, and not subject to Best Interest Duty or the FASEA Code. It is a gigantic scam that is harming consumers, and needs to be stopped.
What a Freaking Joke Intra Fund Advice is.
We’ve got the Industry Funds expanding into Conflicted Intra Fund Selling like no tomorrow. Forget about hidden commissions and hating on Financial Advisers. As long as their Govt Regulatory buddies green light this rubbish they will go to town SELLING / ROLLING OVER , etc as much Super as possible into their only products.
Conflicted Advice – no never.
Best Interest Duty – no never.
FARSEA Education for Phone jockey sellers – no never
Now the freaking banks want to jump on it too.
GET RID OF ALL VERTICALLY INTEGRATED ADVICE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!