legalsuper was established in 1989 and is a public offer fund (meaning anyone can join). Under legalsuper’s Australian Financial Services Licence (AFSL 246315), legalsuper is authorised to provide financial product advice on superannuation products.
Financial product advice is a general recommendation or a statement of opinion, or a report of either of those things, that is, or could reasonably be regarded as being, intended to influence your decision in making a decision about a particular financial product or class of financial products (in this case, superannuation), or an interest in such financial products.
There are two types of financial product advice – general advice and personal advice.
Your legalsuper representative will be acting on behalf of legalsuper and can provide factual information, as well as general and personal advice.
Legal Super representatives are limited to providing financial product advice on legalsuper products and options only. Legal Super representatives can provide assistance on general superannuation matters as follows:
• How super works
• How to join the Fund
• How to find lost super
• How to consolidate multiple super accounts
• The different contribution options available to build up your super
• The Fund’s investment options
• The Fund’s insurance options
• How to make a beneficiary nomination
• Your options when considering retirement
• Benefit quotes and account balances
• Other general superannuation matters.
a. Provision of Factual Information
Factual information is best described as information, the truth or accuracy of which cannot reasonably be questioned.
b. General Advice
General advice is any advice which does not amount to ‘personal advice’ (see section c below).
As general advice does not take into account any of your personal circumstances, you will need to consider if the general advice provided is appropriate in light of your objectives, financial situation or needs before taking any action.
c. Personal Advice
Legal Super’s representatives can provide ‘scaled’ or ‘limited in scope’ personal advice.
Personal advice is only provided on the following topic:
maximiising your superannuation account balance through a contribution and pension drawdown strategy (sometimes referred to as a ‘transition to retirement’ strategy).
Personal advice is advice which:
• takes into account one or more of your specific individual objectives, financial situation or needs; or
• a reasonable person would expect the provider of the advice to have taken into account one or more of your specific individual objectives, financial situation or needs. The Legal Super representative will ask you for some, but not all, of your objectives, financial situation and needs.
Are there any costs?
Legal Super and the Fund may receive administration fees payable by you as a member on additional or new money invested in the Fund. The administration fee payable is disclosed in the PDS. Legal Super representatives are paid a salary and do not receive commissions or any form of incentive payment. Legal Super does not charge any fees for the provision of factual information. Legal Super does not charge any fees for the provision of general advice.
Legal Super may charge a fee when a representative provides you with limited in scope personal advice as summarised in the following table:
|Transition to retirement||nil|
|Ongoing reviews or assistance with implementation of the advice||$150|
Your Legal Super representative will advise you if you have requested a service that attracts a fee charged by Legal Super. The SOA will confirm all fees payable to Legal Super.
Please note that members can request to deduct the fee from their Fund account, which will be called an Advice Fee. Alternately, the fee can be paid by cheque directly to Legal Super.
What is the advice process?
If you request ‘limited in scope’ personal advice, you will be asked to complete a personal profile document provided by the legalsuper representative. This personal profile collects the information that legalsuper will consider when preparing any advice.
The legalsuper representative will subsequently prepare and send to you your SOA (by your choice of mail or email), which confirms information including:
- any recommendations
- applicable fees and charges payable to Legal Super
- documents that you require to assist you in evaluating the advice; and
- the forms that you need to complete
Do any conflicts of interest exist?
legalsuper is not a member of any financial group nor does it have any ownership links or affiliations that would affect the advice provided by its representatives.
If you are given advice by a legalsuper representative in relation to the Fund, you should be aware that legalsuper is both the adviser and the Trustee of the Fund. However legalsuper is required by law to act in your best interests both as adviser and Trustee.
You should be aware that any fees paid to Legal Super are used in the general running of the Fund and are not used to distribute profits to Legal Super or any third party.