CSSA Renews Calls on Treasury to Preserve Corporate Super Services for Employers and Fund Members
Employer financial services need to remain under FoFA: CSSA
The Corporate Super Specialist Alliance (CSSA) is seeking a Future of Financial Advice (FoFA) regulation so that employers and fund members can continue to receive the financial services they need in relation to their company super funds.
CSSA President, Douglas Latto said employers and policy committees need to ensure their members receive competitive benefits and features at a competitive price. “Fund members need access to general advice and information to help them improve their life insurance decisions and retirement savings outcomes,” he said. “Corporate super specialists have a long history of providing these very important services and we need to make sure we can continue to deliver them.”
Mr Latto said that faced with the obligation to choose an alternative superannuation fund in order to comply with MySuper, employers now need access to low-cost financial advisory services more than ever. “Once MySuper starts, thousands of companies will be looking for advice to help them select a default fund for their employees,” he said.
The CSSA made submissions to both Treasury and to the former Ministers for Financial Services and Superannuation seeking this regulation to enable the ongoing provision of services to employers. No decision was received prior to the Federal election.
“We put forward a solution which we believe is in the best interests of corporate super fund clients and, with a change of Government, we are now urging Treasury and the incoming Assistant Treasurer Arthur Sinodinos to consider our recommendations,” Mr Latto said.
Mr Latto also said that without a regulatory solution, corporate super specialists will have to stop providing their services to employers and corporate super fund members. “This would have devastating consequences for the funds which now enjoy a range of services at the employer level; at the policy committee/representative body level; at the individual super fund member level and at the collective member level,” he said.
Mr Latto said a regulatory solution is necessary following the decision to decline the CSSA’s request for a No Action Letter from the Australian Securities and Investments (ASIC).
“Advisers have been placed in a position where it is impossible for them to avoid breaching the conflicted remuneration provisions if they provide services to both employers and employees and this needs to be resolved in the best interests of all fund members,” he said.
