Employer super: are there still business opportunities?

By Stephen Black, Head of Employer Super

With the introduction of MySuper and FoFA reforms over the past 12 months, we have seen unprecedented change in the employer super space. The effect of this new regulatory environment on adviser revenue with the removal of group life and trailing commission has caused many to re-think their service offering in this area. Are there still business opportunities in this space?

Many financial planning and accounting practices generate their revenue streams from 'business' clients as well as 'personal' clients. The typical revenue streams generated by these practices are:

  • Financial advice fees
  • Risk insurance fees (both business and personal)
  • Tax accounting fees (both business and personal)
  • SMSF administration fees
  • Lending fees

These streams of revenue need to be considered both from a business 'cash-flow' perspective as well as a business 'valuation' perspective.  How can participating in the employer super space enhance these revenue streams as well as add additional value to your business?


The key is to look for an employer super partner who supports financial advice by remunerating advisers/accountants who provide services to employer superannuation plans.


With the banning of trailing and insurance commissions on MySuper products as well as for 'choice' members through FOFA legislation, product providers who are looking to support advice in this space have developed new remuneration structures for advisers servicing employer plans. This remuneration is referred to as 'relationship management service fees' or similar.


The nature of these is a flat dollar-based fee per member to meet legislative requirements. To receive these fees, there needs to be a demonstration of services provided to members and the employer.


These services would typically include member education, preparing policy committees, handling member queries and reviewing insurance requirements and so on. The payment made to advisers/accountants may vary depending on the level of services provided. This will vary between the super product providers.


We believe this flat-dollar per member fee structure fits with account business models (or referral partners) as it is transparent, consistent across all members and easy to monitor. The services provided are also clearly linked to the remuneration collected.


Benefits for these practices of recommending employer super to business clients are:

  • Retention: By assisting business client with providing a staff benefit such as an employer plan with customised insurance and fee structures, assists with the retention of this business for the advice practice. It also allows the practice to demonstrate added value by providing education and advice to the employees within the business
  • New revenue stream: As the relationship management services revenue grows over time, this will add value to your practice both from a cash-flow and business valuation perspective.
  • Creating a referral base: Your practice will become the contact point for all employees if they are seeking advice or have any queries around their superannuation needs. This referral base will also provide opportunities to support your existing revenue drivers (as stated above) through the cross-promotion of these services.

Want more information?

If you're after more information on the opportunities for your business in the employer space, you can speak with one of our specialist relationship managers.