Editorial: Consumers take crown
If you think this Federal election is a fizzer, then consider this: if the Labor party manages to unseat the Government in less than two weeks time, you will no longer be able to take ongoing commissions on your individual clients’ superannuation guarantee contributions.
A ban on superannuation guarantee commissions has been a long stated ALP policy, a move that is also backed by the Democrats, meaning that it would not have much trouble getting through the Senate if there is a change of government.
On the other hand, if the Government holds on to power, would more of the same be a better deal?
Would Prime Minister John Howard, for example, have been prepared to peg back the outrageously generous superannuation entitlements of politicians if Labor Opposition leader Mark Latham hadn’t announced it as policy first?
Whatever the outcome of the election, the reality is that both major political parties will probably be paying closer attention to the business of financial services going forward.
As Money Management reports in this edition, both Labor and the Coalition already have a large bag of policies that will impact on financial planners and the financial services industry more broadly, largely around superannuation and retirement savings.
These can only increase.
Over the last 10 years financial planners have been the kings of financial services. You only have to look at the way that all the major banks and financial services conglomerates have been falling over themselves to ‘gain distribution’ to understand that.
But the plates are now shifting and it is consumers who are quickly taking on the mantle once reserved for financial advisers.
The recent debate about soft dollar commissions and conflicts of interest in financial planning is a clear sign that the consumer is rapidly becoming king.
And where there are consumers, there are votes.
No politician will be able to ignore that, particularly as more and more politically active baby boomers move into retirement.
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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 wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
