Intra-fund advice sits alongside full advice

Canberra-based fund AvSuper has become one of the few industry funds to seek and receive relief from the Australian Securities and Investments Commission (ASIC) to provide intra-fund advice.

The intra-fund advice offering will sit alongside the fund’s pre-existing relationship with its “financial advice partner”, Outlook Financial Solutions.

Despite the Government’s approval of a class order with respect to intra-fund advice being regarded as a breakthrough for the industry funds in the advice arena, few have actually opted to pursue the granting of formal relief, with most preferring to examine their options consistent with the associated guidance note.

However, AvSuper chief executive Michelle Griffiths said the fund had applied for authorisation from ASIC in response to member requests.

As a result of the granting of relief, Griffiths said the fund had developed a qualified team and would be assisting members with advice on topics such as choosing an AvSuper investment option, increasing voluntary contributions, buying life insurance within the fund and accessing super early under financial hardship rules.

She said members would not be charged for the service or asked to pay any commissions or additional fees when acting on the advice.

Griffiths said the fund’s existing relationship with Outlook Financial Solutions would continue, with members requiring more detailed financial advice being referred to Outlook, where they would receive discounted member rates.