Compare Credit Cards
- Credit Cards Home
- Balance Transfer Rate
- Low Interest
- No Annual Fee
- Reward Credit Cards
- Business Credit Cards
- Gold & Platinum
- Debit Cards
Compare Banking
Compare Loans
Compare Insurance
- Insurance Home
- Health Insurance
- Home Insurance
- Life Insurance
- Motor & Bike Insurance
- Travel Insurance
Investment Providers
Links
Government May Introduce New Legislation To Regulate Super Funds Sale Commissions
The Federal Government may introduce legislation aimed at reducing conflicts of interest in financial services. The legislation may include a ban on granting commissions for the sale of superannuation (super) and managed funds.
Chris Bowen, Minister for Financial Services, speaking at a conference organized by the Investment and Financial Services Association refused to rule out whether the Government would introduce such legislation.
Mr. Bowen declined to put forward a timetable for any proposed changes, ahead of the results of two pending industry inquiries. The Henry Review of Retirement Incomes and Cooper Review of Superannuation.
Any new legislation will aim to avoid repetitions of the failure of the $1.3 billion Storm Financial Group and the collapse of managed agricultural schemes Great Southern and Timbercorp, which industry participants accuse of running beyond their scope of remit.
“We will be giving all parties time to make submissions on any proposed changes,” Mr. Bowen said.
Mr. Bowen suggested that there would be a period of policy stability following any new legislation and urged the industry not to be fearful of change.
“In every change there is challenge and opportunity, and the superannuation industry should welcome the chance to streamline its administration and not be subject to annual ad hoc change,” he said.
Mr. Bowen said he wanted to congratulate the financial services and financial planning industries for the leadership they had shown on the question of sales commissions and other conflicts of interest.
From next July, association members will adopt negotiated upfront fees as the underlying principle of any sale.
Compare Australian Bank Accounts
Related posts
Comments
One Response to “Government May Introduce New Legislation To Regulate Super Funds Sale Commissions”
Leave a Reply
Stay away from the retail sector of superannuation.
This is the big banks and includes dealer groups and financial planners (IFSA/FPA) – they will erode your super & savings!
Get into an appropriate industry fund for your profession or trade.
If you are in a commonwealth/state fund (likely defined benefit) or corporate fund then STAY THERE !!!
Be wary of financial planners who will always try to commute/switch you to a retail product.
Be aware that no one including the Government really cares about you, your super or your retirement…they just want your money (SG contributions) today for other purposes so you need to protect yourself.
Cheers