Increased advice offerings on super funds' radars

Up to three-quarters of superannuation funds are looking to substantially increase their advice offering over the next three years, while almost a quarter will look to marginally increase their advice.

The survey, undertaken by participants at the Conference of Major Superannuation Funds (CMFS) on the Gold Coast, found that advice is certainly on the radar for funds looking to increase their services for members as a means of retention.

But David Whiteley (pictured), chief executive of the Industry Super Network (ISN), told delegates the financial planning industry was concerned about the plans for growth.

“It’s an irony lost on me that industry funds are now advertising and promoting financial advice, when we have often been portrayed as being anti-advice – which has never been the case,” he said.

Whiteley said that over the last few weeks, intra-fund advice had been portrayed as ‘McDonald’s advice’.

“We need to ensure that advice provided by super funds … is not seen in any way as second rate or substandard.

“We have to consistently promote the benefits of the advice that we provide our members, as well as the appropriateness of the advice,” he said. 

Kay Thawley, chief executive of Industry Fund Services, said the best way for funds to achieve the expansion of their advice offering was through leveraging the workplace even further.

She said the best way for industry funds to do this was to build shared capability through the Industry Super Network by using union workplace representatives to distribute toolkits.

She also suggested funds could reach more members with third party distribution agreements alongside their in-house advisers, with one example being the possible use of credit unions.