MLC backs end to product flogging
Money flowing between product manufacturers and financial advisers has to stop if the financial planning industry wants to counter allegations that financial planners are a sales force, according to the chief executive of MLC, Steve Tucker.
Reacting to the recommendations of the Parliamentary Joint Committee on Corporations and Financial Services (PJC), Tucker said financial planners had the capacity to create a more trusted and transparent advice environment, but that the industry had to move to a system where clients paid their adviser for advice and then paid administration and investment fees to product manufacturers.
He said there had been a lot of speculation about what the PJC would recommend, but what the committee had ultimately delivered was a sensible range of recommendations for the Government to consider — all of which would have a positive effect on the future of the advice industry.
AUTHOR
Mike Taylor
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