Choice to lobby independents on opt-in

Consumer group Choice has announced it is pressing federal parliamentarians - particularly the independents - to support the Government's Future of Finance Advice (FOFA) bill.

Describing itself as "the people's watchdog" and claiming to have run a 20-year campaign in the pursuit of improved financial planning, the Choice announcement said the vote of the independents would be vital to ensuring the passage of 'opt in'.

Pointing to the fact the FOFA changes begin their progress in Parliament today, Choice said the legislation contained "a critical measure to ensure consumers who are disengaged or not aware they are paying fees out of their investments, or are not receiving an ongoing service for the fee, will get important reminders.

Choice director of communications and campaigns, Christopher Zinn said he believed it was astonishing the financial services industry "has got away with hidden charges for so long".

"Regular renewal of fees will put an end to advisers drawing fees off accounts with little or no transparency or consent from clients," he said.

Zinn claimed many financial advisers were already seeking client consent for ongoing fees, and had demonstrated the change would create very little additional cost.

"The cost to planners will not be significant, but the benefits to consumers and the wider industry will be enormous through increased levels of trust and confidence," he said.