ART supports new class of adviser with a strong consumer safety focus

As the profession awaits the minister’s final verdict on the new class of adviser, Australian Retirement Trust’s (ART) head of advice, Anne Fuchs, said this initiative would significantly enhance access to “really simple” advice, describing it as “another great way” to improve consumer accessibility.

Speaking on an episode of Momentum Media’s Relative Return podcast, Fuchs explained that while Australia’s second largest super fund recognises the potential benefits of a new class of adviser, it believes “strongly” that any implementation needs to prioritise consumer safety.

At ART, the fund already has a digital advice tool for its “QSuper members” via its super app, which it is actively working on “extending” across its entire member base.

This tool complements a robust support network, which includes 70 phone-based advisers, 25 education specialists, and dedicated business development managers that work with advisers. Additionally, guidance specialists are available to provide “high-quality general advice” on “higher order” questions.

Fuchs emphasised that a new class of adviser would essentially guide members through that digital advice journey.

“A large percentage of our members have really low levels of financial literacy and digital literacy, particularly our older members. So having somebody over the phone who was able to talk through a digital advice experience to a member and explain all of these concepts about what transition to retirement is and what risk means would be marvellous,” she said.

Fuchs highlighted that even if the new class of adviser doesn’t materialise, ART is proactively developing the next generation of financial advisers through its graduate program in collaboration with Griffith University.

“We have intakes of graduates coming in from Griffith University, young professionals who’ve done their bachelor of commerce and they’ve done their major in financial planning. Griffith University is my old university in Queensland, and so they come in and they do their professional year with us and then become fully financial advisers and we see a big role that superannuation can play.

“Let’s just say if the new class of adviser didn’t happen, we can still recruit a lot, the next generation of new advisers in through a graduate program like we already have today and create the next generation of advice professionals. But of course, we would love the new class of adviser.”

Fuchs first announced the fund’s plans for a digital tool back in March last year. At the time, she said the tool would be an “end-to-end digital advice platform” – encompassing calculators, DIY advice and human-led intra-fund advice.

“That [the platform] we believe needs to be able to create a member experience, which is why it’s going to be a single platform,” Fuchs said.

“So, if it gets too hard and you [the member] are doing a DIY experience, you can put your hand up and say, ‘Can I have an adviser now’ and they screen share and talk to you.”

At the time, Fuchs said the platform should kick-off at the end of 2024.