Intra-fund financial advice a threat to corporate superannuation
The Corporate Super Specialist Alliance (CSSA) is concerned that when the third tranche of Future of Financial Advice (FOFA) reforms is released, intra-fund advice provisions will lead to a blurring between financial advice and administration costs.
The intra-fund advice fee may be bundled in with the administration fee and also include personal advice. However CSSA president Douglas Latto said any personal financial advice should be explicit, and paid for by individual members on a case by case basis rather than bundled in with the administration fee.
"In its proposed form, this [intra-fund financial advice] fee is hidden within the admin fee and is likely to include personal advice," he said.
"This is in complete contradiction to what the [Industry Super Network] and the Government claim that they are trying to remove through their introduction of opt-in. This demonstrates double standards."
In its proposed form the fee would be set by the fund rather than by the person giving or receiving financial advice. The fee should also be able to be negotiated with each employer, because some employers wanted a much higher level of service than others, he said.
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