AFA claims infringement of adviser rights

AFA/afa-chief-executive/superannuation-fund-members/ASFA/mysuper/association-of-financial-advisers/association-of-superannuation-funds/financial-advisers/superannuation-funds/parliamentary-joint-committee/government/chief-executive/life-insurance/

15 October 2012
| By Staff |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 days 4 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5