The Financial Services Working Group has released its first consultation paper on improving access to simple superannuation advice for all Australians.
The paper seeks comment on steps that could be taken to help Australians access low-cost financial advice about their superannuation.
Commenting on the paper, Minister for Superannuation and Corporate Law, Nick Sherry said: “Superannuation is compulsory, it is the largest area of unmet need for financial advice, and there are many unsophisticated investors. Access to basic advice is critical when people need help making retirement savings choices.”
Financial services associations, the FPA and Industry Super Network also responded favourably to news of the paper.
“The review will make access to advice easier and less expensive for the seven out of ten Australians who currently don’t seek advice. Many super fund members for example, have straightforward questions and the regime in place at the moment makes it prohibitively expensive for them to get advice,” FPA chief executive Jo-Anne Bloch said.
Industry Super Network executive manager David Whiteley said that the paper demonstrated ASIC was demonstrating leadership in overcoming hurdles to the provision of financial advice and that this leadership was most welcome.
“Superannuation should be distinguished from other financial products because of its compulsory nature. This consultation paper demonstrates good public policy and practical thinking on behalf of the regulator,” Whiteley said.
The consultation paper invites submissions from the financial services industry and the public. Closing date for public submissions is July 15, 2008.
