Funds should not provide 'advice'
|
|
A financial planning group head believes that interactions between superannuation funds and their members should not be termed ‘advice’.
Guardian Financial Planning executive manager Steve Browning said that terming such interactions as ‘advice’ carried with it the risk of confusing consumers and that it should, instead, be termed “informed guidance”.
In doing so, Browning said Guardian was calling on the Government to require that superannuation trustees in the process of providing informed guidance include a verbal and written warning to members of the limitations of their informed guidance.
He said that, in addition, the trustee should be obliged to explain in writing what full financial advice would constitute and where they might access a full financial advice service.
“Without that, the risk is that people will walk away believing they have received financial advice while what they have received, in reality, is informed guidance restricted to one tax-effective investment structure called superannuation,” Browning said.
AUTHOR
Mike Taylor
Recommended for you
The Federal Court has made interim travel restraint orders against two Falcon Capital directors, while also freezing one director’s assets.
For the 2025 financial year, all but one listed advice licensee has reported double-digit share price growth – but which licensee has seen the best performance and what activities have they enacted during the period?
Evidentia Group has confirmed its new executive leadership structure, having been formed from the merger between Evidentia and Lonsec Investment Solutions, to shape the future of managed accounts.
CC Capital, the last remaining player in the bid to acquire Insignia Financial, is still yet to finalise its offer, the firm has informed the market.
