The Association of Financial Advisers (AFA) has called for specific disclosure requirements to be put in place for intra-fund advice, calling this feature a fundamental weakness in the MySuper legislation.
The AFA has used its submission on the Future of Financial Advice (FOFA) amendments to express concern about intra-fund advice that is covered by a superannuation fund’s administration fee.
It is calling for this type of advice to either be limited to general advice or become subject to “separate and specific disclosure so that members who have received financial advice from the fund during the year truly understand how much they are subsidising the provision of financial advice to other members of the fund”.
“We consider the non-disclosure of intra-fund advice fees to be a fundamental weakness in the MySuper legislation,” the AFA said in its submission.
“If transparency was a central objective of the FOFA legislation then it should also be applicable to MySuper.”
The AFA also used its submission to express support for most of the amendments proposed by the Government, such as the removal of the opt-in requirement and amendments to the best interests duty.