Commissions debate no longer relevant
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Whether you are for or against commissions doesn’t matter anymore, according to the managing director of Elixir Consulting, Sue Viskovic.
“The fact is it’s not a debate anymore, change is coming whether we like it or not,” Viskovic told a session of the Praemium Business Solutions Conference.
Although commissions have not been banned in Australia as they have in the UK, the threats to commissions are fast accumulating.
The Parliamentary Joint Committee Inquiry on Corporations and Financial Services did not recommend legislating against commissions, but it did suggest that there is no place in the industry for them.
But even if the Government decided not to legislate against commissions, Viskovic remained convinced that the industry super funds' campaign against commissions would continue to gain traction.
“Industry super funds — and other players in the market as well — will educate consumers about how easy it is to transfer out of their current super fund into a more cost effective one and stop paying those big, bad financial advisers,” Viskovic said.
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