Govt will consider Ripoll with Cooper
|
|
The Australian financial services industry will have to await the outcome of the Cooper Review into superannuation before it knows precisely how the Government will act on the broad recommendations flowing from the Ripoll Inquiry.
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, has made clear the Ripoll recommendations will now be viewed in the context of what emerges from the Cooper Review.
Welcoming the delivery of the Ripoll recommendations, Bowen said the Government would respond to the committee’s report in conjunction with the Cooper Review, which was also looking at commissions and fee structures in superannuation.
He reiterated his statement to last week’s Financial Planning Association conference where he said any regulatory changes by the Government would be guided by the following two key principles:
• The financial advice that people get must be in their best interests — distortions to remuneration, which misalign the best interests of the client and the adviser, should be minimised.
• In minimising these distortions, we need to ensure that we don't put financial advice out of reach of those who would benefit from it.
“We'll be working through the recommendations of the Ripoll Inquiry and will judge its recommendations against those two policy principles, to help ensure that financial advice is in the best interests of the client, while keeping this advice within the reach of those who may need it most,” the minister said.
Bowen said it was worth noting that the Ripoll Inquiry’s report carried bipartisan support.
AUTHOR
Mike Taylor
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
