On Thursday, 9 July 2009, ASIC issued Class Order Relief permitting superannuation fund trustees and financial advisers to give more information and advice (intra fund advice) to members about their existing interests in their superannuation funds. This was achieved by granting superannuation fund trustees relief from the requirements of section 945A of the Corporations Act 2001 when giving personal advice to members on intra fund issues.
We attach links to the following documents related to this announcement:
- ASIC Media Release dated 9 July 2009, click here.
- ASIC Regulatory Guide 200 – Advice to super fund members, click here.
- ASIC Class Order [CO 09/210] – Intra-fund superannuation advice, click here.
- ASIC Class Order [CO 09/210] - Explanatory Statement, click here.
The aim of the Class Order Relief is to increase access to intra fund advice to enhance member engagement with their superannuation fund, without the necessity for members to seek separate fee-paying advice for this type of information from a financial planner. The new rules permit superannuation fund trustees to provide personal (intra fund) advice to members about their existing interest in a superannuation fund such as choosing an investment option the fund offers, increasing voluntary contributions, buying life insurance within the fund, and accessing super early if the member experiences financial hardship.
The Class Order Relief does not cover advice about super that goes beyond the above matters, such as switching super funds, consolidating money held in several funds into one fund, more complex retirement planning issues, insurance a member holds outside their super fund, and allocating money between super and their financial products.
There are conditions which must be met in order for the Class Order relief to apply, including telling the member that advice being given is limited to the member's interest in the super fund (and confirming this in writing), and providing written information about the cost implications of acting on the advice.
We will be happy to assist you if you have any queries in relation to the Class Order Relief.
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