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This is ASIC now controlling and capping advice fees.....irrespective of how much work or how many hours will be involved.....so the remuneration will not be commensurate to the input...so advisers are getting crucified by ASIC once again.
This is no gift from ASIC...in fact, this makes it worse for advisers because now clients will avoid approaching advisers even for a $300 fee because they are anxious, stressed, losing money, jobs, and security and all they want is some scoped or scaled advice.
Can you imagine having to sit down with a client and go though everything that really needs to be done at this point in their lives when they have been a client for 5-10 years and they trust you and they know that you already are aware of their circumstances.
By ASIC placing a $300 fee limit on this advice, ASIC well know that virtually no adviser will be giving advice for that fee and the client will simply go straight to their super fund who will direct them to the ATO for nothing and they will make their own mind up.
What adviser in their right mind is going to put their arse on the line for $300 when in 5 years time they come back to say the advice was not correct because it had long term impacts to their retirement income.
The actual cost of the advice is more like $3000 because of the ridiculous red tape and compliance requirements and who is going to pay $3000 for advice to get their hands on $10,000 of superannuation monies ???
ASIC have simply placed a ridiculously low limit because they know the advisers will not be able to do it and for those that do, it will be easy pickings at a later date.
This is simply smoke and mirrors.
When a client asks if they should access their super now, either hand them the phone no. for the ATO or act the whole advice process out in charades.
What a joke.