The Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume, believes the Government’s legislation imposing ongoing fee arrangements on financial advisers has been well-received by the industry.
In a letter responding to queries from a financial adviser arguing that the renewals should be moved to a five-year cycle, Hume said that Government had fully considered industry feedback to its exposure draft legislation and made amendments in order to minimise compliance costs without weaking protections for consumers.
“I understand that the industry has generally reacted positively to the amendments made,” she wrote in the letter.
Referring to the annual fee renewal arrangements, Hume’s letter said that the obligations would help clients in an ongoing fee arrangement to determine “whether they are receiving services commensurate with the fee that they are paying and ensure that fees are not charged ‘invisibly’”.
She said that the legislation had been aimed at addressing the risk of fee for no service.