Opposition to push fee disclosure further
TheFederal Opposition is signalling its intention to move even further than the Government in terms of life-time fee disclosure with respect to superannuation.
The Opposition Spokesman on Financial Services, Senator Stephen Conroy, says given the impact that fees can have on a person’s final retirement income, Labor believes it is important to disclose the cost of fees over time.
Conroy used an address to theInvestment and Financial Services Association(IFSA) to highlight the failure of both IFSA and theAssociation of Superannuation Funds of Australia(ASFA) to reach agreement on a single fee model as requested by the Federal Government.
He says the failure of both associations to reach an agreement will now result in the Federal Treasury imposing a model, which is scheduled for release over the next few months.
“In our view, the single fee model should provide consumers with a single fee to allow them to compare different products and in addition, should show consumers the cost of fees over time,” Conroy says.
“Our objective is to empower consumers to make informed investment decisions.”
He says for consumers to be empowered they have to be given the information required to make fully informed decisions.
“In our view, the information needed includes the cost of fees over time,” Conroy says.
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.