AFA claims infringement of adviser rights
The Association of Financial Advisers (AFA) has claimed that tricky drafting of the legislation delivering MySuper has effectively infringed the property and income rights of advisers.
AFA chief executive Richard Klipin said it appeared the legislation had been purposely drafted to deprive advisers of the earnings they received from existing default option superannuation clients.
"This represents an acquisition of property rights on unjust terms, which would in other circumstances be contrary to the constitution," he said.
Klipin said the Government had failed to put forward an adequate case to justify what amounted to a huge exercise that would disadvantage many superannuation fund members.
Further, he said the recent report of the Parliamentary Joint Committee which had reviewed the legislation had chosen to discount the very serious consumer disadvantage.
Echoing concerns expressed by the Association of Superannuation Funds of Australia (ASFA), Klipin said the legislation suggested the Government was making assumptions around member disengagement and attempting to force all members who had not chosen an investment option, or chosen the default investment option, into a MySuper fund.
He claimed the mandatory transfer could result in members losing benefits they were not even aware of, particularly with respect to life insurance which might prove to be inferior under the MySuper arrangement.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
