Mr De Gori needs to explain to we, his members and to our clients how to implement this change and why. My Practice only has a few affected clients, but most of these are in long-term legacy products, that if changed to a new product, would lose grandfathering under Centrelink rules and lose out on entitlements there. Hardly in their best interests.
I'm no Einstein, but as the commissions are a tax deductible expense to funds, stopping commission payments will not mean that 100% of the commission amounts will be passed onto clients.
How will the clients be better off, if I charge them the same amount as a fee as I receive in commission with a net worse off position? I should add, that as these affected clients are long-term clients, before a lot of the extra compliance costs came in, I have not charged them a fee over and above the small trail commission I receive, even though I treat them just the same as higher paying fee clients.
Removing trail commission will only help to put financial advice out of reach of many Australians. I trult look forward to the FPA Roadshow this year so rank and file regional advisers can ask the FPA hierarchy can ask them why they have sold us out!
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