What happens if the grandfathered commission payment built into the product pricing model is retained by the product provider, not passed back to the client and the adviser then has to charge a fee for service in order to provide the client with ongoing advice?This would immediately result in the client being disadvantaged from a cost perspective.This would mean the change in legislation would be immediately acting against the client's best interest.If a change in legislation were to disadvantage a client or increase their costs, the body instigating the change would be negligent in it's duties.It is not up to the Govt to determine if a sweeping change in legislation would benefit every client in the country as they have no measure by which to make that determination.How would the Govt instill measures by which to monitor whether every single product provider across every single pre-FOFA product is passing on any cost saving associated with the removal of grandfathered commission payments?This must be determined by advisers who are governed by the best interest duty and can assess a clients individual needs and circumstances and whether a transition from a pre-FOFA product to a post-FOFA product is going to be of benefit to the client.
In order to give you the best site experience, we need to know what kind of investor you are. Please select the title that best describes you below.
Financial Advisers - Investment
Financial Advisers - SMSFs
Individual Investors with SMSFs
Financial Advisers - Insurance
Accountants and Solicitors
Financial Services Professional