Government has no right to legislate remuneration: AFA
The Government does not have any right to legislate the payment structure of the financial services industry, according to the principal of Alexis Compliance and Risk Solutions, Christina Kalantzis.
Speaking at the Association of Financial Advisers (AFA) National Roadshow in Sydney, Kalantzis, who is the co-chair of the AFA government and policy committee, said she had never seen governments legislate payments for an industry.
Fees and charges should be decided by competition within the industry, and it was up to the regulator to promote that competition, she said.
The Government should keep out of fees and charges, she added.
Richard Klipin, the chief executive of the AFA, said there was a “whole lot” of misinformation about what financial planners do and he called upon the members of the AFA to get in front of their local members of parliament to talk to them about the industry and their practices. There was a great need for education about the industry in the public, he said.
There was no point talking about price without talking about the value of advice as well, he added.
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