Now super funds can give you advice but financial planners cry foul

The Australian Securities and Investments Commission yesterday granted special relief allowing super trustees to offer limited advice relating to their funds.

Federal Superannuation Minister Chris Bowen said the changes represented "a significant benefit for superannuation members who have not been able to get answers to basic questions about their retirement savings without having to pay for unnecessarily expensive advice". The move is a win for industry super funds, which have long argued they have been under-serviced by the system of 16,000 financial planners because industry funds do not pay commissions.

But the special relief also extends to retail funds, with the goal of allowing super investors simple options, including reassessing their investment decisions within a particular fund.

The executive director of the Industry Super Network, David Whiteley, said: "Now it's feasible for super funds to provide advice on simple issues: should I do the co-contribution? Should I get some insurance? Should I be in the growth option?"

Under previous regulations, answers to these questions were regarded as financial advice that could be offered only by financial planning licensees.

The executive manager of the Financial Planning Association, Joanne Bloch, said advice offered under the changes would not be subject to consumer protection, including criminal sanctions for poor advice.

Ms Bloch said the new system would subject millions of people to unprotected advice, with consequences for their superannuation, including the potential of mis-selling.

Mr Whiteley said: "I would have thought if you wanted examples of mis-selling, you would start at Westpoint, move on to Storm and then go to Great Southern."