End commissions before increasing super guarantee

superannuation-guarantee/commissions/remuneration/industry-super-network/financial-planners/financial-services-industry/government/

7 December 2009
| By By Mike Taylor |
image
image
expand image

Industry superannuation funds claim they want the Government to fix planner remuneration via commission and tax issues before it moves to lift the superannuation guarantee to 12 per cent.

The message is contained in an Industry Super Network (ISN) briefing note, which argues that increasing the superannuation guarantee "without addressing the inequitable tax concessions and efficiency drags of the commission system would be a sub-optimal policy outcome".

ISN executive manager David Whiteley claimed next year would be a crunch time for Australia's superannuation system and that it was imperative to "fix unsustainable leakages in the system caused by trail commissions and other inducements to financial planners".

"Increasing contributions with the system as it currently is will only increase leakage," he claimed. "It is estimated nearly $5 million a day is being gouged from hard working Australians' retirements through commissions paid to financial planners."

Whiteley said in circumstances where the Government would be next year weighing up the recommendations of three substantial reports into the superannuation and financial services industry, it needed to address conflicted remuneration structures.

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?...

2 months 3 weeks ago

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

2 months 3 weeks ago

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

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND