Govt canvasses mandated super voice in advised | Australian Markets

ANALYSIS

Treasury’s session paper round offering steering to superannuation fund trustees on best observe ideas for retirement income options has canvassed these trustees involving themselves in pre-existing relationships between financial advisers and their purchasers.

While superannuation entities and foyer teams final week went by means of the customary course of of welcoming the session course of, it’s financial advisers who must be alert the implications which could move from the proposed method.

Under the heading “Engaging with advised members” the Treasury session paper really means that trustees have interaction with advised members to “empower” them to “have more informed discussion with their financial advisers”.

The session paper then asks stakeholders whether or not trustees have the aptitude in place to assist members throughout completely different phases of life, together with forward of retirement?

“If yes, provide a brief overview of current practice. If not, why not?” the session asks.

The session paper acknowledges that “some trustees have large proportion of their membership in an ongoing financial advice relationship” and that these “these members generally have an individually-tailored retirement solution, developed in consultation with their financial adviser, that takes into account their broader circumstances and goals”.

“The role of the trustee in supporting members in advised relationships to achieve positive retirement outcomes may be more complex due to the high degree of tailoring that these members receive,” it says.

“The principles call for trustees to ensure that their suite of products and product settings are appropriate for the characteristics of their members and member cohorts, which includes advised members. Whilst recognising the benefits to the member from an advised relationship, the principles suggest trustees have scope to support advised members to achieve positive outcomes by including advised members in member engagement efforts with members approaching retirement, including information on the trustee-designed retirement income solutions and products available through the fund (principle 16),” the session paper says.

“In doing so, trustees could present insights on choices in retirement and empower members to have more knowledgeable dialogue with their financial advisers. This info is especially invaluable for members who could exit an advised relationship over time or should not have an ongoing financial advice relationship to make sure these members can obtain and keep good retirement outcomes.

“It is not suggested that this information should be provided by the trustee in a repeated or ongoing fashion. In acknowledgment of the existing client-advisor relationship, the principles suggest engagement can state that a member may already have a tailored retirement income solution,” the session says.