Read the explanatory statement Billy:'you will breach Standard 3 if a variable component of your remuneration depends on the amount or volume you recommend of those products, because your interests will or may conflict with your duty to act in the client’s best interests' (Section 38, page 6)If you read that section in full, it's not just percentage based fees that will be affected for self-employed advisers. You won't be able to charge a set-dollar fee or even an hourly rate, because the number of products you recommend to a client, will influence the 'amount or volume' of your remuneration. Unless of course, you charge exactly the same fee to every single person who walks in the door, regardless of their complexity (ie. a more complex client needs more products, therefore higher fee) but then you would fall foul of the 'good value' test for the less complex clients. The way I see it, FASEA has effectively made it illegal to operate a self-employed financial advice practice from 1 Jan 2020. The only financial advisers allowed to operate going forward will be the totally conflicted, employees used by the industry funds and banks to flog products and retain customers.
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