Hume believes industry is ‘positive’ on fee renewals
The Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume, believes the Government’s legislation imposing ongoing fee arrangements on financial advisers has been well-received by the industry.
In a letter responding to queries from a financial adviser arguing that the renewals should be moved to a five-year cycle, Hume said that Government had fully considered industry feedback to its exposure draft legislation and made amendments in order to minimise compliance costs without weaking protections for consumers.
“I understand that the industry has generally reacted positively to the amendments made,” she wrote in the letter.
Referring to the annual fee renewal arrangements, Hume’s letter said that the obligations would help clients in an ongoing fee arrangement to determine “whether they are receiving services commensurate with the fee that they are paying and ensure that fees are not charged ‘invisibly’”.
She said that the legislation had been aimed at addressing the risk of fee for no service.
Recommended for you
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
