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
The levy payable by financial advisers for the Compensation Scheme of Last Resort has almost quadrupled for FY26 as the government launches a formal review.
Melbourne and Perth-based Endeavor Asset Management has added 24 financial advisers to its AFSL this week, with overall industry numbers rising by more than a dozen.
The industry has reacted to the retirement of Stephen Jones as Minister for Financial Services, recognising his efforts on scams and financial reforms.
Australian advised clients are the most eager among global peers to invest in private markets, according to Hamilton Lane, with their knowledge of the asset class also being higher.
