The Federal Government has accepted the Quality of Advice Review (QAR) recommendation to allow superannuation funds to provide retirement advice and information to their members about investments. At a recent meeting of industry executives, Minister Stephen Jones said superannuation funds would be the big winner from QAR.
While the finer details have not been released, it appears superannuation funds:
- Could provide personal advice on both superannuation and investments
- Should take into consideration the member’s personal circumstances, including social security entitlements, and
- Charge a fee for the advice they provide, although it is anticipated there will be a limit on the fees that can be charged.
While superannuation funds, may be the “winner”, a lot of preparation will be required by the superannuation funds to meet the requirements of the government. If the government is true to form, I suspect they will severely limit the fees that can be charged to members.
Digital technology will be the key to their success. While many promote the use of AI, I believe this is a flawed model when the fund must take into consideration the member’s personal circumstances.
Advice Online is a software developed to meet these challenges. Let’s see how simple the process for the superannuation fund will be:
- The member is asked to register an Advice Online account and complete the Fact Find.
- The Fact Find includes a section called “About Me and My Family”, that will provide the adviser about the member’s personal situation, their risk tolerance, their short term financial objectives and the advice they require.
- The Fact Find includes an easy-to-complete table of information about their investments, homeownership and all their retirement accounts.
- The Fact Find, tells the adviser how much the member wishes to spend in making additional loan payments and investments, including personal superannuation contributions.
- Once the Fact Find is completed, the adviser is notified by email.
- The adviser reviews the information in the Fact Find and then imports the information directly into a financial plan.
- The adviser reviews the objectives of the member and optimizes the plan to meet those objectives.
- Once the plan is completed, the adviser will write their advice specific to that member, using a selection of advice panels. The advice can be as simple or as complex as required.
- Advice Online will then automatically generate the Advice Record.
- The adviser will “Publish the Advice” and the member is notified the Advice Record has been completed.
- The member will log into their account and find not only the Advice Record but a full multi-media experience.
This experience includes:
- The dashboard, provides 8 dials, displaying information on a yearly basis, allowing the client to slide to any year and view the results.
- The Advice Record is displayed as an interactive report, that can be downloaded as a PDF
- An additional three interactive reports (Plan Map Illustrated, The First 5 Years, and a Debt Management Summary).
- A further 10 PDF-style reports, including the Insurance Needs Evaluation that can be completed by the client and returned to the adviser in the Client Connect Portal.
You may be wondering what is a full multi-media experience.
Watch this short video clip to find out.
Glenis Phillips SF FIN
Designer of Financial Mappers and Advice Online