ISA said lobbying by banks has led to consumer protections being removed from the laws through “surgical use of fine print and caveats” and that the remaining laws would place Australians at risk of conflicted advice.
“These changes were lobbied for by the banks and financial planners, including the Commonwealth Bank,” ISA chief executive David Whiteley said.
“If these regulations are not disallowed by the Senate they will return the financial planning industry to the bad old days when consumers don’t know if financial advice is impartial, or tainted by kick-backs paid to their financial planner. “
ISA said the regulations in current form reduce the best interests test “to a checklist” and remove opt-in, which will allow commission-like fees to return.
In addition, ISA said the regulations create loopholes that will allow nine forms of shadow commissions to be paid.
“All consumers, but particularly retirees, deserve to be able to rely on iron-clad consumer protections when receiving financial advice,” Mr Whiteley added.
Talk about hyperventilation from Mr Whitely with spin and mistruths. Yeh lets all get ISA funds where how much you really pay and to who is unknown. Where your money is invested is also unknown, where Union shonks and spivs provide kickbacks and jobs for the boys. Yeh lets go. Where do I sign. When is someone going to show this guy up for what he is.
Put everyone including Industry Super Fund Advisors and Bank Employees under the same rules and let us get on with providing quality Financial Advice.