Planners better qualified than trustees

Financial planners should have a fiduciary duty to their clients and, on that basis, be granted the same relief as superannuation fund trustees with respect to intra-fund advice, according to the Commonwealth Bank (CBA).

In its latest submission to the Cooper Review, the CBA has argued that financial planners are best placed to provide advice to individuals whether they are superannuation fund members or otherwise because they are more highly skilled.

“As distinct to superannuation trustees, advisers are required to posses the relevant skills and experience necessary to deliver quality advice,” the submission said.

Referring to the recommendations of the Ripoll Inquiry that planners carry a fiduciary duty, the submission said the class order relief relating to superannuation fund trustees and the provision of intra-fund advice should be extended to financial advisers.

“The compelling argument for this extension is that the justifications for providing the relief will then apply equally to both licensed trustees and advisers,” the CBA submission said.

“This would continue to meet the objectives of the guide in improving the effectiveness of the retirement savings system without compromising retail investor protection, with the additional benefit of removing the existing regulatory imbalance,” it said.