22 Jul 2009

HESTA has updated its program of free personal financial advice for its 650,000 members just days after the Federal Government affirmed that super funds are able to offer the service.

HESTA CEO Anne-Marie Corboy welcomed the government’s decision to cut the red tape for selected super funds (those that have an AFSL) to provide advice on super contributions, allocation of assets and insurance.

HESTA has had its program in place for three years, but the new legislation enables much shorter Statements of Advice to be written. This will allow HESTA’s Superannuation Service Advisers to provide more members with intra-fund advice.

“HESTA’s limited personal advice service is free. The new legislation will enable more members to take a more active role in their superannuation, including retirement planning and insurance,” Ms. Corboy commented.

HESTA’s advice service is part of its Education and Advice program which is delivered at the workplace with the co-operation of HESTA employers. Member Education Managers provide education sessions on superannuation generally, or on specific topics. If a member then wants personal advice about their options within HESTA, they may consult with a Superannuation Service Adviser who can provide written recommendations as part of HESTA’s general member servicing.

If a HESTA member has broader financial planning needs, or requires advice outside the scope of the limited advice areas, they are referred to a fee-for-service Financial Planner – HESTA currently uses the services of Industry Fund Financial Planning.

HESTA members, who are drawn from the health and community services sector, are in an advantageous position as HESTA has the infrastructure and program in place to immediately implement the new clear, straightforward written Statements of Advice.
 
“We believe our program empowers our members, 85 per cent of whom are women, to take real control over their financial wellbeing,” Ms Corboy said.