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The Industry Super Network (ISN) has claimed some lobbyists within the financial planning industry have been pushing to water down the Government’s financial advice changes by having proposed annual opt-in arrangements changed to three-yearly opt-ins.
The ISN’s chief economist, Sacha Vidler, claimed such a move would water down the Government’s intentions in circumstances where the grandfathering arrangements included in the Future of Financial Advice changes were intended to allow for a smooth transition.
“Clearly, any weakening of the annual renewal provisions would seriously harm the efficacy of reforms and justification for grandfathering,” he said.
“If financial advisers only have to ask clients to opt-in to asset-based fees every three years instead of every single year, they will continue to profit from consumer inertia and disengagement,” Vidler claimed.
He said requiring regular negotiation over fees was an important step in ensuring consumers only paid for advice they wanted and received.
