Earlier this year, the CEO of the Association of Superannuation Funds, Pauline Vamos told me in a story for SBS World News Australia, that 2013 was all about rebuilding the super industry's reputation.
Falling equity markets along with excessive fees have turned some people away from the sector. In fact, a Financial Services Council Bond Report showed, discretionary contributions of the 12 months to September 2012 fell by 6.3 per cent to $1billion.
On top of that, the industry has to abide by new and changing rules sparked by the global financial crisis including Stronger Super, MySuper and the Future of Financial Advice reforms.
Some planners say, adhering and keeping on top of the changes, is shifting their focus away from achieving the retirement goals of their clients.
For now though, those reforms, may at least help improve the sector's image.
Today, Bill Shorten, the Minister for Financial Services and Superannuation introduced legislation into Parliament, that would define the terms "financial advisor" and "financial planner".
It's an attempt protect the consumer from unlicensed operators like property spruikers, who may appear to be offering genuine financial advice, but aren't.
The reforms will make it against the law for a person to falsely say that they are a financial planner or financial adviser and give ASIC and the ACCC greater power to impose penalties against them.
In a statement, Mr Shorten said, "These reforms will enable consumers to know who to trust with their financial affairs, and build consumer confidence in the financial product advice industry".
It's been welcomed by the Association of Financial Advisers. Its CEO Brad Fox said "We believe that this legislation is good for financial advisers and also for the consumers who rely upon financial advice. Consumers deserve to have clarity with respect to who they are seeking advice from."
It comes as the reforms proposed in the Future of Financial Advice, become mandatory from 1 July 2013.
These guidelines are currently voluntary and include a prospective ban on conflicted remuneration structures including commissions, along with the expansion and availability of low-cost simple advice to improve access to financial advice and affordability.
In other good news for super contributors, the median growth fund has seen another 2 per cent increase in February.
According to super research firm, Chant West, the gain for the financial year to date is now 13.2 per cent.
The recent equity rally prompted the increase, on the back of improved investor sentiment.
