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Fee for service is conflicted because it encourages advisers to recommend products which generate more fees. Products such as SMSFs or internally managed portfolios.

Fee for service is conflicted because it encourages advisers to recommend unnecessarily complex solutions, which require more fees to implement and explain.

Fee for service is conflicted because it encourages advisers to spend more time with clients than may be necessary. For example doing quarterly reviews to discuss the minutiae of sharemarket volatility, when it may actually be in the clients interest to ignore short term volatility and focus on longer term performance.

None of the above situations are necessarily wrong. In some cases they will be in clients' best interests, in others not. But that is determined by a best interests test, not whether the payment method is conflicted. All payment methods are conflicted.

Similarly with commission based insurance advice. In some cases it will be in clients' best interest in others not. But that is determined by a best interests test, not whether the payment method is conflicted. All payment methods are conflicted.