More ISN research, more bad news
|
|
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
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
