[PeterRM]

You are providing a financial service/advice to clients/members hence I would expect you would be authorised under an AFSL or be an AR under an AFS licensee.

https://asic.gov.au/for-finance-professionals/afs-licensees/do-you-need-an-afs-licence/

 

[PeterRM]

Firstly are you meeting the best interest duty? Is the client better off in Product A or B? This should be your initial justification before moving the funds and trying to ignore the cover.

See ASIC’s summary on super switching http://asic.gov.au/regulatory-resources/superannuation-funds/superannuation-advice/super-switching-advice-complying-with-your-obligations-info-182/#soa

However, my old licensee would see this as still a recommendation to maintain insurance much like if you were recommending maintaining/holding an investment allocation to a fund. When reviewing the from fund you are reviewing the whole fund not just the investment component.

If you are still of the opinion to undertake a partial rollover consider the facts: <span style=”display: inline !important; float: none; background-color: transparent; color: #333333; font-family: ‘lucida_sans_unicoderegular’,arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 16px; orphans: 2; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; -webkit-text-stroke-width: 0px; white-space: normal; word-spacing: 0px;”>is this in the best interest of the client to have a secondary fund which they will need to top up to maintain the insurance costs? Does the fund require regular contributions to maintain the cover? how much of a balance do you determine to leave behind? Notably there are increased risks of loss of insurance should the fund no longer have sufficient funds to pay premiums hence there is a duty of care to make the client aware of these positions.</span><b></b><i></i>

Can the cover be replaced externally? Are they medically fit to undertake revised cover?

Why don’t you review the insurance and seek approval to also advise on the external fund from your licensee?

Regards

Peter

[PeterRM]

Hi Paul,

Happy to discuss further with you.

Let me know exactly what you are after then we can assess your requirements. You can also email me at peter@whitefamily.biz

Regards

 

Peter

[PeterRM]

Did you call ASIC? Possibly a clearer answer would be provided by phone.

[PeterRM]

Magnus,

 

Did you find someone in time?

 

Regards

 

Peter

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