Intra-fund advice class order hardly used

ASFA/australian-securities-and-investments-commission/trustee/association-of-superannuation-funds/FOFA/superannuation-trustees/superannuation-funds/financial-advice/

27 September 2011
| By Mike Taylor |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has been told that the class order clearing the way for superannuation trustees to provide intra-fund advice has received little take-up in the time it has been available to the sector.

However it has been suggested the class order relief might have been more widely used if it had allowed fund trustees to grant access to related entities or other Australian Financial Services Licence holders.

In a submission to ASIC dealing with guidance on the scaling of advice, the Association of Superannuation Funds of Australia (ASFA) acknowledged that the intra-fund advice class order was likely to be revoked as a result of the Government's Future of Financial Advice (FOFA) legislative changes.

The ASFA submission said the organisation accepted that the class order would be revoked "as it is clear that the take up for the class order has been low and that the full impact of the FOFA legislation is yet to be seen".

"However, it has also been pointed out that if the trustee model for accessing the relief was changed to one that allowed the relief to be accessed by another AFSL provider or related entity of the trustee, then the relief might be more widely used," the submission said.

Elsewhere in its submission, ASFA pointed out to ASIC that the FOFA legislation would make elements of its consultation paper providing guidance on scaled advice redundant.

Homepage

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 3 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 4 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