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......." ASIC did not mandate fee levels and she did not believe it should"....
But we will oversee the fees and determine if they are fair and reasonable and then intervene to ensure we will eventually drive down advice fees to an unsustainable point and where the vast majority of super members will not receive any form of advice.
If a client had $500,000 in their superannuation and had nominated 4 beneficiaries all of whom are classified as dependents but are no longer tax dependents and the member has no understanding of the tax consequences to these beneficiaries in the event of their death, what is the real value to that member and the beneficiaries if the adviser identifies this important issue immediately and explaining the potential outcome so the member is fully informed ?
If the tax upon upon the members death was reduced by 30K, 40K or 50K by altering the nomination to their spouse, rather than the adult children and provision made within their Will for the adult children etc, what is that advice worth?
This is the type of real world value advisers deliver every week of the year and this is also the type of advice that may be remunerated via grandfathered commission allowing the member access to advice year round at a cost that in the vast majority of cases is reasonable and fair.
Many members do not realise the differences between Binding and Non Binding Nominations, Lapsing Non Binding and Lapsing Binding etc etc and why would they?
That's why the abolition of legally approved grandfathered commission payments is wrong and will restrict a large number of members from being able to access valuable personal advice at a reasonable cost.