ASFA pleased with FOFA’s intra-fund definition

The Association of Superannuation Funds of Australia (ASFA) is pleased the draft Future of Financial Advice (FOFA) legislation does not change the definition of intra-fund advice.

It said fund members would continue to have access to the service because of the non-narrowing of the definition.

"ASFA has long said that the cost of this service should not have to be met directly by the member, but instead should be able to be paid for collectively across the fund or fund division," ASFA chief executive officer Pauline Vamos said.

"We are pleased that the draft legislation contains measures that do not prevent this."

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Under intra-fund advice, a superannuation trustee can provide advice to members where the cost of the advice is shouldered by all members of the fund.

A registrable superannuation entity (RSE) licensee could offer intra-fund advice to members of the fund after 1 July 2013 under the Stronger Super reforms.

Vamos said ASFA would review the draft legislation in detail and consult with the Government on the final legislation.

"One of the key pillars of our superannuation system is ensuring people can get the most out of their superannuation. At the very least, this includes access to basic advice that helps them make simple decisions regarding their accounts," she said.