According to RG 146.137, a financial adviser providing advice on superannuation products will be required to apply the following knowledge (where applicable).
Superannuation (Specialist Knowledge)
Operation and management of the superannuation industry
- characteristics and structure of a superannuation product
- roles played by intermediaries and issuers
- types of superannuation products
- fee structures/administration and management costs
- types of contribution
- annuities/pensions, allocated pensions and income stream products
- associated risks
- structure of superannuation plans management and administration of superannuation products
- preservation rules
- investment strategies within superannuation funds (i.e. investment concepts and strategies)
- restrictions on investment strategies
Taxation
- impact on investment earnings
- employer and employee contributions
- benefit payments and expenses
- tax deductions
- capital gains tax treatment
- roll-overs
- reasonable benefit limits
- superannuation surcharge
- social security pension eligibility
- retirement planning
- death benefits
- franking credits
Legal environment—disclosure and compliance
- the role of the representative/financial adviser
- relevant legal principles (e.g. Corporations Act, ASIC Act, Superannuation Industry (Supervision) Act, Privacy Amendment (Private Sector) Act)
- the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the financial adviser’s recommendation)
- relevant industry standards and codes of conduct
- regulators’ guidelines including our requirements in this policy
- complaints resolution procedures (external and, if relevant, internal)
- trustee rules