Invest
How to make financial advice more affordable
Recognising that financial advice needs to be made more readily available to Australians through their super funds, one advocacy group is calling for the widespread uptake of a “record of advice” instead of the commonly used “statement of advice”.
How to make financial advice more affordable
Recognising that financial advice needs to be made more readily available to Australians through their super funds, one advocacy group is calling for the widespread uptake of a “record of advice” instead of the commonly used “statement of advice”.
The Association of Superannuation Funds of Australia (ASFA) has called for increased productivity and efficiencies within the Australian super industry and has developed a “six-step plan” for post-COVID-19 gains.
It wants to make advice more accessible to members, noting that “one of the factors that can make a significant difference to member outcomes in retirement is receiving financial advice”.
Acknowledging that current challenges do impede efficiencies of providing advice and can make advice less accessible and unaffordable for the average person, ASFA has proposed that members’ most frequently asked questions should be able to be answered through a record of advice, or an RoA.
This is instead of an industry standard statement of advice (SoA).
An average SoA costs a member approximately $1,500-$2,500, whereas an average RoA would cost a member approximately $300-$500, ASFA explained.
“With the current cost of advice posing a significant barrier for members, the comparatively cheaper cost of an RoA would help make advice more accessible,” it said.
According to the advocacy group, questions that could “easily” be answered through an RoA include:
- Should I stay invested as I am or move my money to a different investment option?
- My account balance has dropped, what should I do?
- How do I set up a pension account?
- Can I claim a tax deduction on my contributions?
- How much can I contribute into my superannuation?
- How do I withdraw my superannuation under compassionate grounds?
ASFA is proposing that an advice provider would provide the RoA instead of an SoA on specified advice topics, with a template provided by ASIC to ensure compliance and consistency.
While some topics covered by an RoA may be categorised as intra-fund advice, ASFA believes it would be up to the super fund to decide whether it will be provided as intra-fund advice or not.
A move to RoAs would require appropriate records to be kept and provided to members and regulators as required.
About the author
About the author
Advice
Securing success: Top real estate investment courses in Australia
Real estate investment in Australia offers a pathway to financial growth and stability, attracting both novice and seasoned investors. Read more
Advice
Navigating the path to citizenship: Real estate investment visa in Australia
Australia's robust economy, high standard of living, and vibrant culture make it an attractive destination for many seeking a new home. Read more
Advice
Email phishing attacks skyrocket due to ChatGPT's influence, experts warn
The rise of Generative AI technologies like ChatGPT has been met with a dramatic increase in cyber threats, particularly in the realm of email phishing attacks. Read more
Advice
Real estate investment for foreigners: A guide to investing in Australian property
Investing in Australian real estate presents a lucrative opportunity for foreign investors, offering a stable and growing market with potential for high returns. Read more
Advice
Smart investing: Using a real estate investment calculator for Australian properties
In the dynamic world of Australian real estate, making informed investment decisions is paramount. Read more
Advice
Choosing between bonds and equities: What’s best for you?
Investing can be a daunting task, especially when faced with the myriad of options available. Two of the most common asset classes are bonds and equities, both with their own unique characteristics ...Read more
Advice
Macquarie responds to ASIC's Federal Court proceedings
The bank has responded to civil penalty proceedings commenced by ASIC. Read more
Advice
Macquarie Bank taken to court by ASIC
The corporate regulator has taken action against the bank. Read more
Advice
Securing success: Top real estate investment courses in Australia
Real estate investment in Australia offers a pathway to financial growth and stability, attracting both novice and seasoned investors. Read more
Advice
Navigating the path to citizenship: Real estate investment visa in Australia
Australia's robust economy, high standard of living, and vibrant culture make it an attractive destination for many seeking a new home. Read more
Advice
Email phishing attacks skyrocket due to ChatGPT's influence, experts warn
The rise of Generative AI technologies like ChatGPT has been met with a dramatic increase in cyber threats, particularly in the realm of email phishing attacks. Read more
Advice
Real estate investment for foreigners: A guide to investing in Australian property
Investing in Australian real estate presents a lucrative opportunity for foreign investors, offering a stable and growing market with potential for high returns. Read more
Advice
Smart investing: Using a real estate investment calculator for Australian properties
In the dynamic world of Australian real estate, making informed investment decisions is paramount. Read more
Advice
Choosing between bonds and equities: What’s best for you?
Investing can be a daunting task, especially when faced with the myriad of options available. Two of the most common asset classes are bonds and equities, both with their own unique characteristics ...Read more
Advice
Macquarie responds to ASIC's Federal Court proceedings
The bank has responded to civil penalty proceedings commenced by ASIC. Read more
Advice
Macquarie Bank taken to court by ASIC
The corporate regulator has taken action against the bank. Read more