Trustworthy advice a super priority: ISA

04-Oct-2013

By Kate Kachor

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The provision of trustworthy financial advice and member savings are the top two policies Australia’s $1.6 trillion superannuation system needed to prioritise, according to the newly rebranded Industry Super Network (ISN).

ISN yesterday announced it had rebranded as Industry Super Australia (ISA).

The rebrand was made to closer align the super body with the increasing role of industry super in Australia's economy, ISA chief executive David Whiteley said yesterday.

As part of the change, ISA released a 20-page manifesto of the top five areas it believed Australia’s super system should focus its policies.

It listed putting members first as the number one priority with providing trustworthy financial advice as the second priority.
Transparency and accountability was the third priority, while fairness and stability was the fourth and sustainable economic growth was the fifth priority.

“Recent reforms to financial advice laws will increase super and other savings by making sure people aren’t paying commissions from their super for advice they don’t receive. They will also make financial advice more affordable and accessible,” the document said.

“In the past, the financial advice industry was largely geared towards providing complex, expensive advice, primarily for wealthy clients.”

The document said recent reforms to financial advice laws were supported by industry super funds, and would benefit members as financial planners and advisers must now act in their clients’ best interests.

Members would also benefit as most sales commissions and other conflicts of interest have been banned.

“We’ve been successful advocates for making the system fairer – including the reforms to financial advice and the banning of commissions,” Whiteley said.
“And most importantly, our outperformance has meant better average returns to our members.”

Rice Warner Actuaries have predicted that Australians’ super and other savings under advice would increase by $144 billion by 2027.

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