{"id":13632,"date":"2011-12-12T07:56:07","date_gmt":"2011-12-11T21:56:07","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=13632"},"modified":"2021-04-15T10:20:42","modified_gmt":"2021-04-15T00:20:42","slug":"intra-fund-advice-regulations-announced","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/12\/12\/intra-fund-advice-regulations-announced\/","title":{"rendered":"Intra-Fund Advice Regulations Announced"},"content":{"rendered":"<p>Advice regarding superannuation consolidation will no longer be\u00a0classified as \u00a0intra-fund advice, under new arrangements announced by Minister <strong>Bill Shorten<\/strong> last week.<\/p>\n<p><!--more-->The Minister for Financial Services and Superannuation issued a statement on Thursday 8 December outlining the requirements that will apply to the delivery of intra-fund advice.<\/p>\n<p>Under the new regulations, intra-fund advice will still cover any general advice or personal advice that is provided within the sole-purpose test.\u00a0 However, new exclusions have been introduced, specifically:<\/p>\n<ul>\n<li>Advice relating to whether the member should consolidate their existing superannuation accounts<\/li>\n<li>Advice to switch the member away from the superannuation fund to another superannuation fund (except to the extent the advice relates to moving a member from an accumulation product into a retirement product offered by the same entity)<\/li>\n<li>Advice that contains recommendations in relation to financial products that the member holds outside of superannuation<\/li>\n<li>Advice in relation to investment choice outside of the trustee-prescribed investment options<\/li>\n<\/ul>\n<p>&#8220;The delivery of scaled advice is critical to achieving the Government&#8217;s objectives of promoting greater access to financial advice.\u00a0 This Government is committed to providing advisers with certainty of how to provide this form of advice in a way that meets their regulatory obligations,&#8221; Mr Shorten said.<\/p>\n<p>Minister Shorten also confirmed that intra-fund advice will be subject to key FoFA regulatory requirements, including the Best Interests duty, a move that was welcomed by the Financial Planning Association.<\/p>\n<p><strong>Dante De Gori<\/strong>, FPA General Manager, Policy &amp; Government Relations, said: &#8220;The FPA feels that the clarification that this announcement has provided on what constitutes intra-fund advice was essential.\u00a0 This is a positive step toward creating best practice financial advice.&#8221;<\/p>\n<p>&#8220;These new regulations still allow superannuation funds to charge indiscriminately and invisibly for their intra-fund advice,&#8221; Mr De Gori said.\u00a0 &#8220;The FPA believes that any fees for intra-fund advice must be transparent to fund members.\u00a0 As long as the Government allows intra-fund advisors to avoid disclosing fees, inequities will remain within the financial planning industry and those most affected will of course be the clients.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advice regarding superannuation consolidation will no longer be\u00a0classified as \u00a0intra-fund advice, under new arrangements announced by Minister Bill Shorten last week.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-13632","post","type-post","status-publish","format-standard","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/13632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=13632"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/13632\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=13632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=13632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=13632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}