FAAA seeks to limit super involvement in | Australian Markets
The Financial Advice Association of Australia (FAAA) has urged limits on the degree to which superannuation funds can present retirement planning advice, stating that it shouldn’t be delivered on a collectively charged foundation.
In its submission responding to the Government’s Delivering Better Financial Outcomes publicity draft, the FAAA has additionally sought to exclude people receiving exterior financial advice from being “nudged” by superannuation funds in respect of retirement planning.
The FAAA’s response additionally makes clear that the draft laws launched is just too slim to make a comprehensively definitive response and has requested that an alternative be given when a additional tranche is launched.
The FAAA has listed its key suggestions responding to the DBFO second tranche as being:
- Retirement planning advice will at all times be complicated and dear advice and shouldn’t be supplied on a collectively charged foundation.
- Consumer safety is paramount in the supply of super nudges, notably with respect to retirement planning, and members needs to be made absolutely conscious of the implications of performing upon these nudges.
- Super nudges shouldn’t be supplied to superannuation fund members with an exterior financial adviser or at the very least needs to be subject to a discover to disregard the nudge if they’ve already obtained financial advice.
- The financial advice regulatory regime needs to be ideas primarily based and allow skilled financial advisers to depend on their skilled judgement. ASIC steerage and enforcement should replicate this design precept.
- The alternative to utilise a Record of Advice needs to be considerably expanded to higher allow the use of this streamlined type of financial advice.
- Every effort have to be made to sensibly rationalise what wants to be included in an advice doc, together with with respect to eliminating the prospect of further obligations being added at a later time by means of regulation or ASIC steerage.
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