Liberal Party vows to oppose banning of commissions
|
|
Shadow Federal Treasurer Joe Hockey has told the Financial Planning Association national conference that the Liberal Party will not support the banning of commissions for financial planners.
"I want to give you this commitment today. The Liberal Party will not support the banning of commissions. We will not do that," he said.
Commissions are part of the revenue of many financial planning practices, he said.
However, Hockey said the Liberal party through Financial Services Reform had always opposed 'secret' commissions.
The client should know whether the advice they are receiving is influenced by remuneration, he said.
"If you take a fiduciary obligation to act in the best interest of the client, it discounts the need for significant reform of commissions," Hockey said.
There is already a legal obligation for advisers to put the interests of their clients first, Hockey said, because if advisers put commissions first, they will be subject to legal penalties.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
