Choice claims advice not always necessary
Consumer group Choice has claimed that the provision of financial advice in superannuation is not always necessary and can, in fact, act to disadvantage consumers.
In a submission to the second phase of the Cooper Review into superannuation, Choice claimed that advice had often acted to the disadvantage of consumers, “resulting in commission-driven sales that push consumers towards expensive retail funds”.
The Choice submission then suggested that, in contrast, advice did not play a significant role in non-profit industry funds, yet those funds had millions of members.
It said that for those consumers who believe they require advice, it would be useful if they had the option to approach an independent, non-profit provider.
“This might require enhancing current services provided by some government and community organisations, such as Centrelink and the National Information Centre on Retirement Investments (NICRI),” the submission said. “Both these organisations focus on advice at the time of retirement, or close to retirement.”
It said this meant there was a significant gap in the availability of non-profit, independent advice services for people entering superannuation or reviewing their superannuation options during the accumulation period.
The consumer organisation claimed that existing services should be enhanced and that these should be complemented by a new, specialist organisation representing the interests of superannuation members, with the ability to provide independent advice and assistance.
AUTHOR
Mike Taylor
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
