Opt-in estimated to cost $100 per client
Treasury officials have confirmed to a Parliamentary committee that the cost of “opt in” to financial planners could run to $100 a client and might cost the average planning firm an additional $100,000 a year.
The estimate was provided to the Senate Economics Committee under questioning from the Opposition spokesman on Financial Services, Senator Mathias Cormann.
The Treasury officials confirmed they obtained estimates of the cost of opt-in and were receiving reports from “various people who are doing studies in this area”.
“When you summarise all the various things that have come in, most are saying that the opt-in measure will cost around $100 per person per client,” the Treasury official said. “For an average size advisory firm, that might be around $100,000 a year.”
The Treasury officials also told the Senate Committee that they were looking at the degree to which volumes rebates distorted advice and indicated that it might be possible to quarantine some rebate arrangements, which were not deemed to distort the advice provided to clients.
They said they were hoping to ensure that legitimate business practices would be allowed to continue.
AUTHOR
Mike Taylor
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