In a statement issued today, ISA said the current FOFA legislation contains an “ironclad best interests test; an iron-clad ban on kickbacks paid to financial planners; and an ironclad requirement that financial planners are only paid ongoing fees if they provide ongoing advice” and lamented the decision to amend the legislation.
“The banks have lobbied for a wind back of the best interests test, the re-introduction of certain kickbacks paid to financial planners and removal of the “opt-in” that stops commission-like asset based fees eroding consumers’ investments, including superannuation,” the statement said.
“The banks are also lobbying strenuously for these changes to be implemented immediately by the making of regulations before 1 July.”
Shelving the plans would be a “prudent” response, the lobby group said.
These Industry Funds clearly think the general public and the media are complete fools. Their statement says ‘commission-like asset based fees (are) eroding consumers’ investments, including superannuation’, yet they charge asset-based fees themselves!!!
Ironclad?
Someone, please fetch me a few straight jackets…there are some people in need.
😉