George Haramis

MoneyGPS will roll out a white-label digital advice product to super funds to help mitigate the impact of a lagging response to the retirement income covenant.

The firm’s co-founder George Haramis has been in the financial services industry for 35 years working in advice practices and dealer groups and started MoneyGPS in 2019 to help solve the advice gap issue.

While the MoneyGPS service has largely been focused on helping give advice on the accumulation stage, Haramis believes they have developed a solution that will help in the retirement income advice aspect, which could assist with the trustee obligations in the covenant outside of product.

“What that will be able to do, in conjunction with our retirement tools is meet their obligations to deliver advice generally but as also as part of the Retirement Income Covenant,” Haramis says.

“What we’re currently building is a pre-retirement check-up report. That covers our full KYC [know your client] requirement, things like best interests’ duty and what have you to analyse someone’s situation for pre-retirement analysis.”

Additionally, they are developing a retirement income calculator/simulator with Deloitte.

“Deloitte do very good work in this area and we’re leveraging the stochastic modelling capabilities and overlaying our own requirements to that which will move into the retirement income SOA [statement of advice],” Haramis says.

“That will be a fully compliant, fully client-led journey. You won’t need an adviser to help you with that. It will cover TTR [transition to retirement], pension, look at the possibility to or the need to access home equity, maybe downsize and so on or if you needed to extend the time to work.”

All aboard

Super funds are anticipated to take on a larger, more direct role in the advice process due to the government’s response the Quality of Advice Review.

Haramis notes the trepidation many funds have in the space, referring to the points made like those of IFS general manager for advice solutions Adrian Gervasoni made the Professional Planner Licensee Summit earlier this year.

When it comes to the current responsibilities trustees have under the covenant, ASIC, APRA and the government have criticised the response.

“Super funds were established to help people build their retirement nest egg, that’s what their focus is, now they’re being asked to offer advice to support the retirement income covenant requirements,” Haramis says.

“I get where [the regulators and government] is coming from, but I feel for the super funds because not only are they now asked to deliver advice. I feel for them.”