Financial advisers have swung their support behind the Government’s simpler super reforms with predictions they will inject close to $100 billion of extra flows into the industry in the next three years.
A report by AMP Capital Investors and Investment Trends found financial advisers expected to process an additional $6.4 million each into client superannuation account in the next three years as a result of the super reforms.
Investment Trends principal Mark Johnson said the boost to the superannuation market was no surprise.
“No, it’s not a surprise,” Johnson said. “It’s going to have a really large effect.
“Clearly planners feel the simpler super reforms will see a huge boost in extra inflows and, as of February, planners were expecting to place most of the money by 30 June.”
The AMP Capital/Investment Trends 2007 SMSF Planner Report found advisers believed 80 per cent of the total figure would be reached by 30 June. Though Johnson believed this is a little ambitious.
“But whatever it ends up being is going to be a big number. It’s definitely going to be huge. It may not have all flowed in by June, though it’s still going to be very large,” he said.
The report also revealed few advisers were worried about the Government making changes to the system once it comes into effect on July 1.
Of the advisers surveyed, 55 per cent said, regardless of whether the rules would change in future, they didn’t really feel that clients would be affected. While 41 per cent of advisers said the new super structure would continue unchanged.
The report, which was conducted in March, surveyed a broad scope of advisers within the industry with the exclusion of bank branch adviser networks.
The $6.4 million average is expected to come from both new and funds under advice and transfers by clients from non-superannuation holdings into their super funds. The average funds under advice for an adviser in Australia is about $34 million.
