While welcoming the release of long awaited clarifications on definitions of ‘intra-fund advice’ as part of the broader Future of Financial Advice (FOFA, the Financial Planning Association (FPA) will continue to question key aspects of these reforms on behalf of Australia’s professional financial planners and their clients.
In summary, according to the FPA, today’s government announcement:
- Confirms that intra-fund advice will be subject to key FOFA regulatory requirements
- Still lacks the basic level of transparency that should be the industry standard for all types of financial planners, because intra-fund planners still don’t have to disclose fees.
Dante De Gori, General Manager, Policy & Government Relations at the Financial Planning Association, said:
“The FPA feels that the clarification that this announcement has provided on what constitutes intra-fund advice was essential. This is a positive step toward creating best practice financial advice.
“However, these new regulations still allow superannuation funds to charge indiscriminately and invisibly for their intra-fund advice. The FPA believes that any fees for intra-fund advice must be transparent to fund members. As long as the government allows intra-fund advisors to avoid disclosing fees, inequities will remain within the financial planning industry and those most affected will of course be the clients.”