Superannuation sentiment appears to shift on advice commissions

Attitudes appear to be changing within the superannuation industry on whether financial planners can provide appropriate advice when they are remunerated by way of commissions.

For the first time ever, the IUS/Super Review Super Outlook survey has come up with a split decision from respondents on the key advice question.

Asked, “Do you believe appropriate advice can be given to superannuation fund members in circumstances where planners are being paid by way of commissions?” the survey elicited a 50/50 response, with half saying yes and half saving no.

This compares with the strongly negative results recorded on the two previous occasions the question was asked within the IUS/Super Review survey.

What is more, a strong majority of respondents favoured allowing superannuation fund members to use a portion of their superannuation funds to pay for appropriate financial advice.

The survey revealed that 85.3 per cent of survey respondents favoured allowing the use of superannuation to pay for advice.

Equally importantly, the survey suggests that superannuation funds should be allowed to play a greater role in the provision of advice to their members.

Asked whether the regulators should relax the rules with respect to financial advice so that more could be provided by superannuation funds, 81.9 per cent of respondents said yes.

While the survey was conducted through October, November and early December and during the Association of Superannuation Funds of Australia conference on the Gold Coast, the results with respect to financial planning appear to indicate a greater involvement of financial planners in the superannuation industry.

The proportion of respondents describing themselves as working in the financial planning sector has increased by more than 25 per cent since the IUS/Super Review survey series was started.