Self-managed superannuation fund (SMSF) specialists have welcomed confirmation in the Federal Government’s draft Future of Financial Advice legislation that there will be no ban on commissions applying to individually-advised risk products with respect to choice products and SMSFs.
Reacting to the release of the first tranche of the Government’s draft legislation, Self Managed Super Fund Professionals’ Association (SPAA) chief executive, Andrea Slattery, said allowing the use of commissions with respect to individually-advised products would remove distortions and would ensure a level playing field for individual insurance policies.
However, Slattery was more cautious with respect to the Government’s approach to the role of accountants and SMSFs.
"We understand the Government is still considering a restricted or structured advice license for accountants who advise on SMSFs," she said. "SPAA has been working hard to ensure the Government understands the importance of a restricted or structured license arrangement, which recognises SMSF accountants may not wish to provide recommendations to clients to purchase specific investment financial products."
"We have also been advising on the minimum competencies required to hold such a license, and we look forward to seeing these final details in the second tranche of the legislation," she said.
Slattery said SPAA had been advocating for the removal of the ASIC class order within RG200, along with advocating for intra-fund advice and scaled advice to have the same level of competency and best interest duty requirements as all other advisers.
