The Association of Financial Advisers (AFA) has written to members ahead of the final report of the Royal Commission forewarning of possible adverse outcomes, including the banning of grandfathered commissions.
In a newsletter sent to members, the AFA said the Royal Commission had asked repeated questions which had given it grounds to have concerns with respect to the prospect of recommendations on changes to the licensing regime and vertical integration, the banning of grandfathered commissions, further restrictions on life insurance commissions and constraints on clients paying for ongoing advice from superannuation accounts.
“We are very conscious that the outcome of the Royal Commission recommendations will place further pressure on the financial advice community at the same time that we are dealing with the implications of the Professional Standards reforms and the FASEA requirements,” the message said.
The AFA also cautioned that the Royal Commission final report would add to the difficult time being experienced by some of its members.
“We ask that in the spirit of the AFA community, you all keep an eye out for each other and respond when it is clear that someone you know is suffering,” the message said.