This article explores and seeks to demystify intra-fund advice (or IFA) and to provide well-needed legal illumination. It does so by identifying the key legal building blocks that need to be considered to properly understand intra-fund advice.
There isn’t a plethora of guidance around the nature and parameters of intra-fund advice. In a helpful note dated 4 December 2020, entitled “Clarifying intra-fund advice”, ASIC makes a canonical statement that: “Intra-fund advice has no special status over other personal advice”. This article followed on from ASIC’s work in ASIC Report 639 “Financial advice by superannuation funds” in 2019, which further explored how funds are providing IFA.
In ASIC’s clarifying note, it also notes that IFA has been subject to confusion, and as a unique type of advice with its own special status. ASIC sees IFA not as a type of advice but rather, as a cross-charging mechanism, which can apply to both general and personal advice.
In our opinion, IFA is, with respect, both of these things.
It is both limited (or scoped) advice concerning interests held by members and other beneficiaries in a superannuation fund, as well as a mechanism for cross-charging the entire fund for the cost of that advice.
If you have any questions, get in touch with our experts below.
Key contacts
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.