ISN backs annual fee disclosure imposition
The Industry Super Network has strongly backed the inclusion of an annual fee disclosure requirement in the new Future of Financial Advice legislation.
ISN chief executive David Whiteley said in a statement issued today that the inclusion of the requirement in the legislation reflected "a community expectation that a service provider will disclose the cost of their service to their customer or client".
While the Government's inclusion of the requirement in the bills introduced to the House of Representatives last week caught financial planning organisations by surprise, Whiteley said he believed it was extraordinary they should be surprised.
"I cannot think of another industry where ongoing fees and charges are not clearly disclosed to customers and clients on an ongoing basis," he said.
"Disclosure of fees and commissions will enable super fund members to assess the value of the service they are receiving from their financial planner," Whiteley said. "This is necessary because there is substantial evidence that millions of Australians pay ongoing sales commissions and advice fees without receiving financial advice."
AUTHOR
Mike Taylor
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