A keynote at the Professional Planner Licensee Summit by David Bell, Executive Director of The Conexus Institute, highlighted the industry's dilemma. Bell noted that while not all funds are eager to embrace more complexity, there is a palpable 'directive'—either explicit or implicit—for them to do so. The emphasis is on creating a streamlined, universally applicable advice process that benefits from yearly updates driven by external input, potentially reducing risks inherent in the advisory expansion.

The expansion of the advice landscape within super funds, Bell argued, could leave the sector vulnerable if not underpinned by robust governance. The risk is that without 'excellence in governance,' advisory services may yield suboptimal outcomes, a concern that regulators cannot ignore. To this end, Bell stressed the need for consistency in advice processes across funds to bolster governance and mitigate complexities.

However, the drive towards a more integrated advisory model within super funds raises ethical and operational questions. In a scenario where super fund advisers operate under a vertically integrated framework, the independence of advice might come into question. Bell anticipates that governmental directives will push funds to offer at least fundamental advisory services, flowing from the broader Retirement Income Covenant reforms intended to ensure members access beneficial advice at all stages.

Despite the challenges, Bell sees super funds as suitable and natural providers of large-scale advisory services. This is particularly pertinent as members approach retirement and require straightforward advice. The task then lies in developing effective 'off-ramps'—transitions for members whose needs escalate beyond the capacity of a super fund's purview, guiding them towards appropriate external advice providers.

Bell envisages a spectrum of advisory services that accommodate varying member needs while retaining space for external advisers. He concluded that with the right regulatory framework and governance structures, super funds stand a good chance of serving their members effectively and ethically.