More ISN research, more bad news
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The Industry Super Network (ISN) is promoting yet more research it has commissioned — this time claiming commissions paid to financial planners redirected as much as $1.3 billion from national retirement savings.
The latest research was commissioned by the ISN and carried out by research and publishing house Rainmaker and sought to undermine the position adopted by the Investment and Financial Services Association (IFSA) by claiming that replacing sales commissions with percentage-based fees would not reduce overall fees.
According to ISN chief executive David Whiteley, the report found that not only would commissions continue to be paid under fee-for service-models, but that the only practical mechanism to ensure consumer sovereignty was for consumers to be able to decide on an annual basis whether they want to receive financial advice.
Whiteley claimed that replacing commissions with ongoing percentage based fees would do nothing to reduce the fees paid by consumers or address conflicts of interest.
He claimed the Rainmaker report had provided further evidence of market failure in Australia’s super system.
AUTHOR
Mike Taylor
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