In a statement released overnight, the lobby group explained that a new Rice Warner report – paid for by the ISA – has found that the bill for consumers if FOFA was amended could be more than $530 million a year in “increased fees and charges from the reintroduction of commissions and other conflicted payments”.
“The report debunks any claims the banks and financial planners [made] that cutting consumer protections will reduce the cost of advice,” said ISA chief David Whiteley.
“The reality is that cutting consumer protections just increases commissions and fees paid to financial planners to sell bank products. It would seem that the banks’ objective is to be able to sell compulsory super and other products through financial planners and other staff, rather than provide Australians with the impartial financial advice that they want, need and deserve.”
The statement described the report as a “conservative assessment” of the long-run costs for consumers as “it doesn’t take into account forgone investment earnings on the fees deducted from savings or the risk of being sold an under-performing product”.
The ISA will present its report to a parliamentary committee in Canberra today.
amazing what rubbish do they come up they the only fair people in Australia that have the client’s interest at heart? I don’t think so. They don’t have enough people on the ground to give impartial advice nor do they give impartial advice.
If you read Australian Super’s financial report you will note all the union appointed director defer their fees to their unions. Hundreds of thousands of dollars a year based on the lie of “to benefit only members”. This is just another lie perpetuated for self interest of unions.
What rubbish. Commissions are outlawed in MySuper funds. IFA, why do you even print this rubbish?
The left also said Keating and the last moronic Labor Treasurer (whos name escapes me)were the worlds best! Not a lot of credibility! Take their statements with a grain of salt and disregard the remainder.
Another questionable analysis by Rice Warner….and / or a manipulation of results from Whiteley. We know Whiteley’s focus is on Super, so, if advisers receive ‘trail/service/advice fees of 1% on average and the Government tax on super is 15%; does this mean the projection is that Government will derive 15 times $7.5 Billion dollars revenue from Superannuation Taxes? Let’s see, that is $112,500,000,000 over 14 years. No wonder ISA/ISN/Labour wants their hands on this money.
What is impartial about getting advice from an industry fund .
Here the arsonist of wealth creation Whiteley is again giving his self interest point of view with absolutely no concern for the consumer who he claims to be protecting.