Members can request that an advice fee (Initial/One-Off and/or Ongoing) is paid to the member’s financial adviser for superannuation advice services that meet the sole purpose test requirements of the Superannuation Industry (Supervision) Act 1993.
This is available for members who receive advice from financial advisers that are registered with Sunsuper.
Payment of an advice fee from a member’s account is at Sunsuper’s discretion. These FAQs set out some of the principles where Sunsuper may exercise the discretion to pay an advice fee from a member’s account.
Payment of advice fees is subject to the Adviser Registration Terms and Conditions.
Who receives the payment?
Advice fees are paid to the financial adviser’s Licensee (holder of an AFSL). Sunsuper Superannuation Fund will provide the Licensee with a RCTI (Recipient Created Tax Invoice) for the GST inclusive amount of the advice fee.
Advice fees for financial advisers are paid to the Licensee on the 15th of the month, or as soon as possible thereafter.
How Sunsuper pays the advice fee?
Sunsuper Superannuation Fund pays the advice fee agreed by a member, as set out in an Advice fee request, by debiting the GST inclusive amount from the member’s Sunsuper account balance.
What advice services can be paid for?
The advice services provided must have a direct, reasonable, and transparent connection to the member’s interest in the Sunsuper Superannuation Fund.
Examples of advice services that can be paid under this arrangement:
- Acquiring an interest in the fund
- Investment choice within the fund
- Managing contributions to the fund
- Insurance within the fund
- Beneficiary nomination within the fund
- Retirement planning and management related to the fund, including pensions paid from the fund.
Examples of advice that cannot be paid under this arrangement:
- Trauma and business insurance
- Managed funds
- Negative gearing
- Credit advice
- Interests and features in any superannuation fund other than Sunsuper
- Transferring any amount out of the member’s account/s to any superannuation fund other than Sunsuper
- Withdrawing funds from the member/s account for a non-superannuation purpose.
This is not an exhaustive list, but rather provides guidance around Sunsuper’s obligations under the sole purpose test.
It is the legal obligation of the financial adviser and their Licensee to ensure advice services have been provided for the advice fee charged.
Advice fees can be apportioned between advice services that can be paid under this arrangement and advice services that cannot be paid under this arrangement. The amount of the advice fee for which payment is claimed from Sunsuper must be reasonable and the financial adviser must be able to support the apportionment if we ask for further information.
Sunsuper reserves the right to decline payment of an advice fee, including by discontinuing further payments of an Ongoing Fee, in any circumstances, for any reason and without giving any reason.
Conditions and rules of advice fee payments
An Advice fee request applies to the member identified in the form. Where a new Advice fee request is submited for any member and is accepted by us, any Advice fee request previously submitted for that member is superseded and replaced.
Because this service is for the debit of advice fees from members’ accounts in Sunsuper, advice fees cannot be paid under an Advice fee request where a member only holds defined benefit or lifetime pension.
Sunsuper will not pay an advice fee if the member’s account would be less than $3,000 after the debit for the advice fee.
For members that have more than one Sunsuper account, an advice fee will be debited from the account with the highest balance, determined at the time we decide to pay the advice fee. For Ongoing Fees this decision is made in respect of each monthly payment of the Ongoing Payment.
The following conditions need to be met immediately prior to the payment of any advice fee:
- All required details of the Advice fee request are completed.
- The financial adviser is registered with Sunsuper and Sunsuper has a completed Licensee RCTI & Banking Agreement in place with the financial adviser’s Licensee.
- The financial adviser is listed on ASIC’s financial adviser register, in respect of the Licensee specified on the Advice fee request form.
- Sunsuper has confirmed the validity of any details provided that are verifiable from Sunsuper’s records and ASIC records.
- Sunsuper may require further details to confirm correct apportionment of the fee for the advice services provided. We will notify the financial adviser for more information if this is the case.
Change of Licensee
Sunsuper will pay advice fees (Initial/One-Off and/or Ongoing) to the Licensee named on the Advice request forms, until we become aware that the financial adviser has changed Licensee.
On becoming aware that the financial adviser has changed Licensee, Sunsuper will not pay any further amounts until we also receive notice from the Licensee that the member is still receiving advice services from:
- the same financial adviser operating under a different Licensee; or,
- different financial adviser operating under the same Licensee.
Where the same financial adviser is providing services to the member under a different Licensee, and the financial adviser re-registers under the new Licensee, Sunsuper practice is to commence payments, including any outstanding payments, to the new Licensee. Where a different financial adviser is providing services to the member under the same Licensee, and that financial adviser is registered with Sunsuper, Sunsuper’s practice is to re-commence payments, including any outstanding payments, to that Licensee.
We encourage financial advisers to contact us if you have changed or propose to change Licensees, so that we can assist with a smooth transition process.
Will the member receive any tax benefits for the advice fee paid?
We are assessing Sunsuper’s entitlement to tax benefits for advice fees paid. These benefits will be passed onto our members if available. We will update this information once this assessment is completed.
What is the maximum advice fee allowed?
There is no “hard limit”. However, if we receive an Advice fee request that we believe is unlikely to be for advice services related solely to the member’s interest in the Sunsuper Superannuation Fund, we will request the financial adviser to provide a full copy of the Statement of Advice (SoA), Record of Advice (RoA), or other evidence of the advice services provided.
Sunsuper reserves the right to decline payment of an advice fee, including by discontinuing further payments of an Ongoing Fee, in any circumstances, for any reason and without giving any reasons.