Choice to lobby independents on opt-in
Consumer group Choice has announced it is pressing federal parliamentarians - particularly the independents - to support the Government's Future of Finance Advice (FOFA) bill.
Describing itself as "the people's watchdog" and claiming to have run a 20-year campaign in the pursuit of improved financial planning, the Choice announcement said the vote of the independents would be vital to ensuring the passage of 'opt in'.
Pointing to the fact the FOFA changes begin their progress in Parliament today, Choice said the legislation contained "a critical measure to ensure consumers who are disengaged or not aware they are paying fees out of their investments, or are not receiving an ongoing service for the fee, will get important reminders.
Choice director of communications and campaigns, Christopher Zinn said he believed it was astonishing the financial services industry "has got away with hidden charges for so long".
"Regular renewal of fees will put an end to advisers drawing fees off accounts with little or no transparency or consent from clients," he said.
Zinn claimed many financial advisers were already seeking client consent for ongoing fees, and had demonstrated the change would create very little additional cost.
"The cost to planners will not be significant, but the benefits to consumers and the wider industry will be enormous through increased levels of trust and confidence," he said.
AUTHOR
Mike Taylor
Recommended for you
ASIC has accepted a court enforceable undertaking from a Perth-based company auditor who failed to adequately conduct multiple audits on an advice firm that receivers say has $100 million missing.
After a brutal month for adviser numbers, the net loss for June now stands at more than 100 advisers, but the financial year is still on track to end in positive territory.
Two advice platforms have been identified by Adviser Ratings as standouts for efficiency as time-pressured advisers become evermore fickle in their platform selection.
Private wealth manager Escala Partners has increased its alternatives allocations to more than a third in the past three years, describing the asset class as offering “fertile ground” for diversification.
