The $20-billion construction and building industry superannuation fund, Cbus, has teamed up with the Financial Planning Association to make comprehensive, personal financial advice more accessible to Cbus’ 700,000 members.
Under a pilot program launched on Monday, Cbus will provide client referrals to FPA members who meet select professional and location criteria. For example, practitioners must hold the Certified Financial Planner designation, adhere to the FPA’s professional code of conduct, charge a fee for service and provide the initial consultation at no cost to the member.
The program will initially be piloted to Cbus members in Queensland, South Australia, Tasmania and the Northern Territory, where the fund has limited financial planning resources.
There is the strong potential for the program to be a national scheme for all eligible Cbus members.
Cbus members have access to inhouse financial advisers who provide holistic advice in conjunction with Industry Fund Services. A team of around 30 people also provide intra-fund advice via an internet and phone-based service. However, there hasn’t been a viable solution for members living in regional and remote areas, who wanted face-to-face meetings.
This program fills that demand, said Greg Harper, Cbus general manager of advice services.
“Our members will have greater service coverage through the FPA and the fund won’t be responsible for the cost of providing those services,” he said.
“As a fund whose profits go back to members, if we can create greater efficiencies in our operations, ultimately the benefits will be passed onto our members and there will be more money in our members’ accounts.”
Harper said the new service, which would mainly be taken up by those in or near retirement, would also increase the likelihood of members forming a long-term relationship with the same adviser.
Given the competitive nature of financial planning, where advisers often move from fund to fund, the joint venture with the FPA removed some key-man risk, he said.
“We won’t compromise on the high service we provide to our members and continuation of service is part of that,” he said.
“Our phone-based service is focused on closure of services, where we ensure tasks are completed for advice outside that scope. This is a true national service with greater coverage for all members.”
