ASFA submission supports difficulty of opt-in

superannuation-fund/ASFA/association-of-superannuation-funds/superannuation-fund-members/FOFA/superannuation-funds/financial-planning/financial-advice/federal-government/

24 February 2011
| By Mike Taylor |
image
image
expand image

At the same time as sections of the financial planning industry fight have proposed opt-in arrangements flowing from the Future of Financial Advice (FOFA) changes, the Federal Treasury has been warned by a peak superannuation fund body about how difficult it can be to engage with members.

The Association of Superannuation Funds of Australia (ASFA) has used a submission to the Treasury to urge the Federal Government to consider making superannuation fund members specifically opt-out of the consolidation processes, which will inevitably accompany the use of tax file numbers (TFNs) as primary identifiers within superannuation funds.

ASFA argued that it had been the experience in the superannuation fund industry that members do not always appropriately respond to correspondence — something that would make opt-in consolidation arrangements problematic.

“Funds’ experience of members responding to correspondence suggests that for ‘within fund’ consolidations the appropriate mechanism may be disclosure through the Product Disclosure Statement (PDS), along with the members being given the option to opt-out prior to consolidation occurring,” the submission said.

The ASFA submission appears to support the arguments of financial planning organisations that annual opt-ins represent an unreasonable burden for planners with extensive client bases in circumstances where many do not appropriately respond to written communications.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND