Industry Super Australia (ISA) has been accused incorrectly blaming the banking industry’s interests for a post-Future of Financial Advice (FOFA) return to a commissions’ culture.
ISA yesterday said the FOFA fine-print suggests banks’ lobbying has been successful in bringing back incentives for advisers who sell their products.
However, the Australian Bankers’ Association (ABA) said banks have been totally misrepresented, with banks strongly endorsing FOFA’s policy intent.
The banking industry was concerned about the FOFA laws creating confusion for retail banking customers around “simple, well understood products”, the ABA said, but supported the best interests’ duty and ban on conflicted remuneration.
“The ISA makes a number of incorrect claims about commissions, sales incentives and the existing law claiming the Government is introducing new loopholes or caveats,” Steven Munchenberg, Chief Executive of the ABA, said.
“The ISA either misunderstands or misinterprets the existing law, or simply wants to perpetuate an anti-bank campaign to serve their own interests.
“This campaign is merely an attack on businesses that are competitors to its members.”
