Australia's financial advisory industry should not view AustralianSuper's decision to work closely with retail advice groups as direct competition but about providing greater access to advice to more Australians, a number of advice chiefs have said.
Association of Financial Advisers chief executive Richard Klipin said with two in 10 Australians currently seeking financial advice the move by AustralianSuper to close the advice gap is welcomed.
"The AFA is much more interested in having the profession and the industry and the providers align rather than squabbling," Klipin said.
"With two in 10 Australians getting advice, as a profession we haven't touched the sides. More advisers are better [as] it will lift competition and it will ensure that good and valuable propositions are delivered to end consumers. We encourage that kind of competition," Klipin said.
Financial Planning Association (FPA) chief executive, Mark Rantall also supported the industry superannuation giant's move, noting the importance of industry unity. "I think it's fabulous where superannuation funds can actually come together with advice firms to provide an advice and financial planning service to their members. He said: "I think it's really positive. If we can encourage that, it shows that superannuation funds realise that their members require financial planning advice."
Late last week, AustralianSuper revealed it has been working with six retail advice groups for the past 12 months trialling and building a new service for its members.
"AustralianSuper has always been a major supporter of good, sound advice. What we do not support is the commission structure of so many super products that leads to conflicted advice," AustralianSuper chief executive Ian Silk said.
The firms participating in the trial include Godfrey Pembroke, Matrix Planning Solutions, Dixon Advisory, Woods & Partners, Paul Moran, Switzer Financial Planning.
