Advice fees in superannuation

In response to recommendations 3.2 and 3.3 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Government has released for exposure:

• Draft legislation to remove a superannuation trustee’s capacity to charge advice fees from MySuper products. Superannuation trustees would still be permitted to charge fees in relation to intra-fund advice as administration fees.
• Draft legislation to remove the capacity of a superannuation trustee to charge advice fees to a member (other than fees for intra-fund advice) unless certain conditions are satisfied. For ongoing fee arrangements, the new conditions would include the new requirements outlined in Recommendation 2.1 (annual renewal, identification of services that will be provided and consent to the charging of fees).