Bowen reserves right to legislate on commissions
|
|
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, has acknowledged the degree to which a submission from the Department of Treasury on financial planning is at odds with the approach adopted by the Australian Securities and Investments Commission (ASIC).
In a television interview this week, Bowen discussed how the ASIC submission to the Parliamentary Joint Committee on Corporations and Financial Services differed with that produced by Treasury.
“Those submissions are different, they have different points of view and there can be unintended consequences of any actions, so you do need to work these issues through very methodically and that’s what I’m doing,” the minister said.
Bowen’s comments reflected the fact that while ASIC’s submission to the Parliamentary inquiry advocates a highly prescriptive approach, particularly with respect to fees and commissions, the Treasury submission has warned that any radical change will substantially undermine the viability of the financial planning industry.
Importantly, while accepting the progress that has been made in the financial planning industry with respect to addressing perceptions of conflict of interest resulting from existing commissions-based remuneration arrangements, Bowen has left open the option of legislating to outlaw some forms of payment.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
