FPA warns on fee increases post-Budget
The Financial Planning Association (FPA) has unsurprisingly welcomed the Federal Budget, which was light on policy changes that would impact its members unlike in previous years where superannuation had been a focus, particularly welcoming the tax cuts.
Specifically, the industry body welcomed moves by Treasurer Josh Frydenberg to increase flexibility in superannuation for people aged 65 and 66, which was announced ahead of Budget night, and tax breaks for low and middle-income households.
FPA chief executive, Dante De Gori, said that the superannuation announcement would help preparing for the upcoming rise in age pension eligibility to 67 from 2020 – 2021.
The FPA was more cautious in welcoming Frydenberg’s plans to implement the Banking Royal Commission’s findings over the next five years however, noting that much of the $606.7 million required would primarily be recovered from the Australian Securities and Investments Commission’s (ASIC’s) industry funding model.
It warned that this would add to significant advice costs faced by the “mums and dads of Australia”, with De Gori stating: “We believe implementing the Royal Commission recommendations is necessary for the protection of consumers, but are concerned by how much it will cost.”
AUTHOR
Hannah Wootton
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
