Choice potentially damaging: Heron

Superannuation consultancy group The Heron Partnership believes financial planners are giving "inappropriate" advice to members thinking about switching funds, particularly when giving advice around defined benefits funds.

The Heron Partnership managing director Chris Butler said the reality was most people were better off "where they are".

"The government advertising gives the impression you have to exercise choice," Butler said.

"If employees are considering exercising choice and they're looking at alternatives, they need to be very careful."

He said ASIC's campaign to monitor financial planners giving advice would "no doubt" make a difference to the advice employees would receive.

Heron research showed a switch in super funds could be financially dangerous and, in most cases, employees did not need to exercise choice, he said.

The Heron Partnership provides independent consultation to medium to large employers and the trustee of their company superannuation fund, and advice to financial institutions and planners.

In March, Butler told InvestorDaily companies would face an outsourcing bottleneck if they did not organise their outsourcing arrangements.

Yesterday, he said Heron had seen "significant activity" in the past four to six weeks with employers getting suitable structures in place for choice.