ISA claims FOFA amendments to cost $7.5 billion

Industry Super Australia has commissioned new research from Rice Warner suggesting the proposed amendments to FOFA will cost consumers $7.5 billion over 14 years.

>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.

ISA claims FOFA amendments to cost $7.5 billion
ifa logo

The must-attend event for financial advisers is back in 2022: the ESG Summit, coming to Sydney and Melbourne in February. Walk away with vital knowledge on a number of key ESG areas to help you make informed ESG strategy decisions and to better communicate and integrate the growing ESG space to clients. Visit the website to secure your place.

latest news

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.