The good advice duty isn’t nearly good enough

Super Consumers Australia’s response to the Quality of Advice Review:

“The proposals create a two tier system. People that can afford it will get access to independent professional financial advice and those that can’t will be left with the conflicted advice of banks and super funds, says Xavier O’Halloran, Director, Super Consumers Australia.”

“The good advice duty isn’t nearly good enough. People want access to independent help to avoid poor quality products. This model will entrench the kinds of conflicts that led to the Royal Commission.”

“A poor performing super fund won’t advise its members to find a better deal elsewhere. This is dangerous given 60% of choice super products perform poorly and retirement products currently lack appropriate consumer protections. Under these proposals Australians will continue to miss out on the quality independent advice which would tell them to switch to a better fund.

“It also opens up a bigger hole for advice fees to come out of super. Super is not a sector known for its self-control when it comes to fees. Australians have been paying more on super fees than on electricity. Opening up a vein for advice fees to drain people’s retirement savings without control is reckless.”

“We encourage the Government to focus on practical steps to improve the delivery of advice for Australians. For example, reform is required to fix the failed disclosure obligations, which see people wading through pages of compliance documentation.”