Bowen to legislate against super commissions as 'a last resort'
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New Federal Financial Services Minister Chris Bowen would consider legislating against the use of commissions as remuneration in the superannuation industry “as a last resort”.
Speaking on the ABC program Inside Business, Bowen said it was his very strong view that it would be better if there was another structure in place (other than commissions).
"I have expressed [a] view privately and publicly that there is a problem with commissions, whether the conflict of interest (in these) is one in reality or perception.
“There is certainly a perceived conflict of interest and it would be better for the industry to move away from that and to come to a new arrangement in terms of paying for advice.”
Bowen emphasised it would “always be better if the industry can come up with a solution, and that legislation should be the last resort".
“But I will be examining the issue thoroughly.”
He said to “give credit where it is due, the peak bodies [the Investment and Financial Services Association] and [the Financial Planning Association] are showing some leadership here and taking the Government’s concerns on board”.
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