In the second tranche of legislation for Delivering Better Financial Outcomes (DBFO), it is anticipated that Superannuation Funds will be given a key role in providing Financial Advice to its members. However, this advice cannot be delivered until the legislation is enacted. The government has indicated this will be before the next election which is anticipated in early 2025.
As industry superannuation funds have now exceeded $4 trillion under management, this is the third biggest pool of cash anywhere in the world. In additional there is also a substantial amount in private superannuation funds.
For most Australians, their Superannuation is the largest pool of wealth and therefore it is essential that they have access to financial advice from their funds. It is becoming increasingly important as there will be a bulge of baby boomers reaching the retirement phase of their life and needing to draw down those superannuation funds in an orderly manner, ensuring they have sufficient funds to last their anticipated life expectancy.
The problem for Superannuation Funds is the lack of licenced Financial Advisers. The government has tried to assist by approving a new Qualified Adviser classification. However, with demand for financial advice, I expect Superannuation Funds will struggle to find the staff and the software to deliver affordable advice to its superannuation members.
Advice Online
Advice Online is a new product designed to automate the financial advice process through a collaboration between client and advisor.
The process is simple in that the client completes a Fact Find that includes personal lifestyle information. Once completed, the adviser imports the information into a financial plan and optimizes the plan to meet the objectives of the client. This is followed by the ability to write the SOA (Advice Record) together with another ten automated reports regarding the plan. The passage of information between the client and the advisor is through an encrypted client portal.
A highlight is the development of Interactive Reports, that include graphs video and audio.
The Advice Online website has four demonstration videos to understand how quickly the process can be undertaken. You can also Contact Us if you would like more detailed information in the password protected Resources.
Please watch our video, Financial Advice Powered by Advice Online.
Glenis Phillips – Designer of Advice Online
Disclaimer: Financial Mappers does not have an Australian Services License, does not offer financial planning advice, and does not recommend financial products.
