Time to open the black box of super fees
Superannuation funds should be made to separately detail the cost of providing intra-fund advice, according to Financial Planning Association (FPA) chief executive Mark Rantall.
Addressing the Association of Superannuation Funds of Australia (ASFA) conference in Adelaide, Rantall said separate disclosure was necessary to ensure fund members understood the level of cross-subsidisation that occurred.
"It would not hurt for the cost of advertising to also be separately disclosed," he said.
Rantall told the conference delegates that the FPA held concerns about the expansion of intra-fund advice to cover transition to retirement and Centrelink issues.
"There is a lot of cross-subsidisation in superannuation and items such as advice need to be separated out to ensure members know what they are paying for," he said.
Rantall also restated the FPA's position on the opt-in proposals suggesting they were unnecessary in a fee-for-service environment.
He said clients made the ‘opt in’ decision each time they paid the fee.
AUTHOR
Mike Taylor
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