Superannuation Funds Allowed to Give Guidance

Written on the 26th of January 2009 by PlannerWeb

As yet another repercussion of the global credit crisis, the rules regarding financial advice have changed.

Australian Securities & Investments Commission has granted superannuation funds temporary relief (if they apply) to help members.

Until now a superannuation fund is not permitted to give any advice, but it can always provide information.

Now it can provide ‘guidance' as long as that is not advice.

The guidance is limited to explanations of types of investments, implications of rollovers and loss of benefits, tax and insurance consequences and reminders about the long-term nature of superannuation and return/violability characteristics.

Is that really much help to anyone in a panic? Unfortunately, funds and to a lesser extent advisers are constrained upon what can be said in a telephone conversation.

Further relaxing of rules is warranted.