MySuper legislation does not address corporate adviser concerns

MySuper legislation does not address the services provided by corporate superannuation advisers, according to Corporate Superannuation Specialist Alliance (CSSA) president Douglas Latto.

The Future of Financial Advice (FOFA) intra-fund fee needs to be transparent and allow corporate superannuation advisers to charge for the services they offer under MySuper legislation, said Latto. 

He said the intra-fund fee introduced by FOFA is set by a third party rather than negotiated by the company, its super members and the advisers who deliver the service. He said MySuper legislation has been drafted so that fees are included within the intra-fund fee.

"That fee will be set by the fund itself, and we have no idea what that level's going to be yet because nobody has told us what that fee is yet, so we believe we may not be able to be rewarded fairly for the services that we're offering," he said.

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Latto said draft MySuper legislation did not allow services to be tailored specifically to companies or members. 

"The MySuper legislation, as proposed, does not allow tailoring at the workplace level. It has a one-size-fits-all approach, with the inability to customise benefits, such as insurance cover, or charge different fees for each workplace.

"In addition, the setting of this standard fee is by the trustee through the intra-fund advice fee and does not involve the employer, employee or the adviser," he said.

Latto said CSSA submissions to the Parliamentary Joint Committee and Senate Economics Committee had been met with a recommendation to the Treasury to re-open negotiations to try to find a solution.