Australian Retirement Trust (ART) has introduced new financial advisory fee caps, which will come into effect for Australian Retirement Trust Super Savings and QSuper accounts from 15 August.
ART’s head of advice, Anne Fuchs, said the changes were among additional benefits for members following the recent merger between QSuper and Sunsuper.
“It doesn’t matter if you’re a young barista or a university student starting your retirement journey, a blue-collar worker, a nurse or a civil servant, we’re offering greater flexibility to make financial advice more accessible,” she said. declared.
“The inclusion of a minimum balance requirement also ensures that members’ balances will not be eroded by advisory fees from financial advisors, which we believe is in their best interests.”
From 15 August 2022, the Australian Retirement Trust advisory fee caps (for Super Savings and QSuper accounts) would be:
- Maximum charge of:
- When a member begins a new advisory relationship with a financial advisor, the financial advisor could deduct an initial advisory fee, up to $1,500 (including GST) if the advice was for the super. This upfront fee would contribute to the costs associated with preparing an initial advisory statement when entering into a new advisory relationship with a financial advisor.
- Members could authorize their financial advisor to deduct an advisory fee of up to a maximum of 2.5% per year from their account balance, capped at $8,800 per year (including GST), to cover costs associated with advice such as implementation advice, ongoing assistance with managing their account, ad hoc advice and annual reviews. The cap would be applied over a rolling 12 month period and applied to the sum of all advisory fees paid.
- Minimum balance of:
- A member must hold a balance of $25,000 in all accounts and no individual account may fall below $6,000 (after any payment of advisory fees).
- Caps have been applied to the total of all advisory fees paid from a member account; there were no separate caps for the different advisory fees.
Fuchs said: “This is a great opportunity for ART members to pay for the financial advice they need to ensure they get the most out of their super, without having to worry about funding it. from their family budget, because we know the cost of living. represents a challenge for many of our members.
“Similarly, financial advisors trust us to serve them and their clients in a simple and timely manner, with dedicated advisory teams specially trained to support advisors,” she said.
More than 4,000 financial advisors had chosen to register with ART for their Super Savings account clients, and nearly 1,000 financial advisors were able to charge advisory fees to their clients with QSuper accounts.
“It is important to note that this benefit is for all ART members. If financial advisors have clients who have a Super Savings account, we encourage them to contact us and also sign up for this consistent advisory fee cap service. For Financial Advisors who have clients with a QSuper account, please speak to their licensee to register their interest,” Fuchs said.