The Federal Government should reject moves to reintroduce sales commissions for financial advices and compulsory super, Industry Super Australia chief executive David Whiteley believes.
Whiteley said a report by Rice Warner showed that the proposed amendments to the Future of Financial Advice laws — which are set to be discussed at a Senate Economics Committee hearing today — would see consumers hit with up to $7.5 billion worth of fees and charges over the next 14 years.
Responding to the findings of the report — commissioned by ISA - Whiteley reiterated claims he made earlier this week that the changes would cut consumer protection, and urged the Federal Government to reject the lobbying of the major banks for the return of sale commissions.
"The report debunks any claims the banks and financial planners that cutting consumer protections will reduce the cost of advice," he said.
"The reality is that cutting consumer protections just increases commissions and fees paid to financial planners to sell bank products."
"It would seem that the banks' objective is to be able to sell compulsory super and other products through financial planners and other staff, rather than provide Australians with the impartial financial advice that they want, need and deserve."
"It is simply extraordinary that the banks are seeking a leg up of this size at the direct expense of Australian consumers."
The ISA's report will be presented at today's Senate Economics' Committee hearing into the FoFA streamlining Bill in Canberra.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
New research from ART has found less than a third of women feel their superannuation is in a good position, reiterating the importance of opening up the advice arena to super funds.
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