Prohibit entry and exit fees
The Cooper Review into superannuation has been urged to recommend the abolition of superannuation fund entry and exit fees and has been told that some financial planners charge a 4 per cent entry fee for little more than the completion of transfer forms.
The message has been delivered to the second phase of the Cooper Review by West Australian-based advisory firm Capital Partners, which used its submission to claim that percentage-based entry or exit fees for superannuation guarantee superannuation should not be allowed.
It claimed the abolition of entry and exit fees would have the effect of minimising the practise of financial planners removing a member from a competitively-priced employer fund and rolling them into a higher-priced personal fund under the guise of choice.
“In the world of ‘financial planning’, it seems to be an accepted method of remuneration to charge a superannuation member a 4 per cent entry fee for little more than the completion of transfer forms,” the Capital Partners submission said.
However, at the same time as calling for the abolition of entry and exit fees, the submission supported the maintenance of the ability for superannuation fund trustees to pay trailing commissions to advisers.
AUTHOR
Mike Taylor
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