THE Australian Democrats have indicated they will back a policy to ban commissions on compulsory superannuation guarantee (SG) contributions if it is shown financial advisers are not acting in the best interests of their clients.
The Democrats flagged the move last week as part of their superannuation policy for next month’s election, which also includes a plan for the Australian Securities and Investment Commission to develop a five star rating for superannuation and investment products based on their level of fees. A policy to ban commission on SG contributions would put the Democrats into line with the Labor party, which has previously stated that it would ban such commissions if it took office.
Democrats spokesman on superannuation Senator John Cherry says during the party’s negotiations with the Government to provide employees with choice of superannuation fund, the Government promised to ensure the regulatory watchdog would keep a close eye on super fees and charges for at least the next five years.
