Catholics flick AMP advice and quintuple member retention

The $2.6 billion Catholic Superannuation Fund has boosted
member retention at retirement from 15 per cent to 80 per cent since taking its
member advice model back in-house.

The Melbourne-based fund outsourced financial advice on its
allocated pension product to AMP Financial Planning in 2002 and became a
corporate authorised representative of the dealer group.

Catholic Super’s allocated pension was in turn put on AMP’s
approved product list.

Speaking to delegates at AIST’s Superannuation
Administration Symposium in Melbourne last week, Tom Sammann, general manager of
CSF’s financial planning arm, said the fund applied for its own AFSL in 2006 to regain
control of the advice centre and resolve some of the branding confusion
members’ experienced when the product sat under the AMP Financial Planning
umbrella.

Since then, Catholic Super has increased its retention rate
from 15 to 20 per cent of members moving into retirement to 80 per cent of
members.

The remaining 20 per cent are lost to retail funds and
self-managed super funds, Sammann said.

Members pay the financial planning arm, CSF Financial Services, a $1210 base fee for
personal advice, with the option to have the fee deducted from their super account.

Sammann said Catholic Super may have to change its advice
model to incorporate ASIC’s new limited personal advice relief, and could look
at combining the advice with its pension call centre.

Catholic Super does not currently have a personal advice licence.

 

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