Industry fund recommended by Genesys
GenesysWealth Advisers has become one of the few financial planning dealer groups to add an industry superannuation fund to its recommended list.
The Australian Retirement Fund (ARF) was added to the 400-planner strong dealer group’s recommended list for corporate super late last week, making it the seventh fund on the list.
Unlike the scant number of similar arrangements between industry funds and dealer groups, Genesys planners will be able to place money into the industry fund irrespective of their client’s current fund membership status.
Australia’s largest dealer group, AMP Financial Planning, made headlines this time last year when it decided to place 10 industry funds, including ARF, on its approved list.
However, AMP planners are only allowed to advise existing industry fund members to retain their account, or to contribute and roll in additional funds. They are not permitted to advise a client to join an industry fund.
In what he explained was a clear break from this restrictive model, Genesys deputy managing director Andrew Creaser confirmed that Genesys planners would be able to transfer a client’s money out of a retail master trust and into ARF if they thought it was the most appropriate investment for their client.
“I think [industry funds] are something the financial planning industry needs to embrace. Provided they are priced and featured appropriately, they can genuinely play a role in the planning process.”
Creaser said ARF could only be offered under a fee-for-service arrangement.
“There’s no trail in ARF, so the adviser will need to charge a fee to provide the advice,” he said.
ARF chief executive Ian Silk confirmed that his fund did not pay commissions and was upbeat about ARF’s inclusion on Genesys’ list.
“We are pleased because it means that we’ll be exposed to a range of people that we might not have come across. But being placed on the list is one thing; actually attracting inflows is another. We’ll be interested to see what happens in that respect,” he said.
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