Securities Institute offers choice guidance

The Securities Institute of Australia (SIA) has engaged advisers concerned about their obligations under super choice, releasing a series of products intended to help them handle the new legislation.

A guide for licensed representatives developed after consultation with the Australian Securities and Investments Commission (ASIC) was released last week, to be followed later in the month by the release of an online education package and a Statement of Advice template, available to SIA members.

The SIA will also co-ordinate a series of seminars on choice to be taken by ASIC and “other high profile industry experts”.

“The SIA supports… views that consumers need confidence in their financial adviser. The SIA has taken steps to ensure its members can readily access adequate information about super choice and their obligations,” said SIA chief executive Brian Salter.

He stressed the importance of financial planners understanding their obligations under the new choice legislation by recalling the United Kingdom’s mis-selling crisis where billions of pounds of retirement savings were lost.

The SIA said key areas to be addressed by advisers under choice include full fee disclosure, loss of insurance benefits, employer indemnities on fund costs, contribution flexibility, post retirement products, investment portfolio choice, service standards and administrative support.