Intra-fund advice will now be expanded to include topics in other areas of advice, the government announced yesterday.
Superannuation funds, through intra-fund advice, can now provide advice in the areas of transition to retirement, intra-pension advice, nomination of beneficiaries, superannuation and Centrelink payments, and general retirement planning.
These measures were all under the new reform initiatives in response to the Parliamentary Joint Committee on Corporations and Financial Services' inquiry into financial products and services in Australia.
"The expansion in the provision of low-cost, simple advice will be of particular benefit to individuals and families who may not currently have access to financial advice," Minister for Superannuation Chris Bowen said.
People will get better access to advice from their superannuation fund as a result of the government measures, according to the Association of Superannuation Funds of Australia (ASFA).
"Fund members will be able to establish a relationship with their fund to gain advice at all stages of their lives. At the moment, intra-fund advice can only be provided about the super fund's ability to help the member contribute to, invest in, or obtain insurance from the fund," ASFA chief executive Pauline Vamos said.
"The government's response now recognises the importance of delivering single/limited issue, cost-effective objective advisory services, particularly in the superannuation and retirement area."
Vamos said removing the road blocks to both funds and advisers will result in higher engagement and greater ability to put thoughts into actions.
Financial planners will also be able to provide limited advice services, according to Vamos.
"The government also recognises that financial planners should be able to provide limited advice services. I think we will see a large increase in the numbers of advisers who are willing and able to provide a full range of services, from simple to very complex."
