Government reforms to create new class of financial advisers to service super fund members
Millions of Australians will be able to tap their super fund for more financial advice about their retirement and superannuation under changes being announced by the federal government, but they will have to pay for the benefit — in some cases even if they don't use the service. Assistant Treasurer Stephen Jones said reforms introduced after the banking royal commission, which revealed horrific stories about "fees for no service", had led to a situation where Australians could not access advice from their super fund about their retirement options. Xavier O'Halloran says the government's reforms are "a huge win for super funds" but could leave Australians with bad quality and costly advice. "This comes on the back of an ASIC report released in May this year which found super funds were failing to protect their members from excessive financial advice costs and failing to check if advice was in the best financial interest of members," he said. "They can't use their superannuation funds to go off and get advice on investing in cryptocurrency or the bond market; it would have to be in or in relation to their superannuation," Mr Jones said.
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