Commenting on the passing of the FOFA amendments, ISA chief executive David Whiteley reiterated the lobby group’s longstanding mantra that the “wind-back” of the laws will bring sales back to financial advice.
“Industry super funds will continue to refuse to pay sales incentives to financial advisers,” Mr Whiteley said.
“Consumers want impartial advice not sales. The wind-back of the FOFA laws brings sales back to financial advice,” he said.
Mr Whiteley said that as a result of the changes, the best interest obligations in the original laws will be gutted, erasing any requirement by financial advisers to act in their client’s best interests.
Mr Whiteley also said the changes will allow fees to be deducted from clients’ savings, even when no service is being provided.
“The changes will re-allow the payment of a range of shadow commissions and sales incentives by banks and their wealth management subsidiaries to financial advisers and frontline staff,” he said.
“The wind-back of the FOFA laws contains a lot of fine print. The blunt reality is that confidence in the advice industry will continue to sink because financial advisers and bank staff will continue to receive sales incentives to recommend specific products.
“Sadly, these changes will only further reduce the reputation of the financial advice industry, which is already in tatters,” Mr Whiteley said.
More hot air and BS from a desperate, insignificant little man who has completely lost the plot and lives in cloud Cuckoo land. It’s time the media stopped giving him any media space because every word from his mouth is drivel. I’m sure there are far more significant things to report on.
More spin by David Whitely hey surprise surprise. If industry funds actually offered their clients quality financial advice, a service that clients need more and more of then maybe he wouldn’t put such a high price on his funds being cheap as there is more to superannuation than just price. You pay peanuts and you get monkeys which explains industry funds and the lack of advice they give their members down to a tee.
So Mr Whiteley believes that his members do not deserve anything more than free ‘advice and service ‘ That is a very clear stake in the ground. Customer retention will be a challenge. Expect all their fun and games to hold on to members via ridiculous admin requests to escalate. This will only support the customer angst to get out.
Excellent…according to David it’s open season on the public by advisers. I’ll wear my sheep outfit. “bang bang got one!”
I wouldn’t want a sales commission from your industry super funds even if one was offered. But perhaps you could let me charge a one-off for some advice unless you’re worried that I might start to rip off your precious FUM.