IFSA has announced ‘tough new industry standards’ that will allow superannuation customers much more control over the fees they pay for superannuation products and advice.
Under the new standards, which have been formally ratified by IFSA member organisations, fees for financial advice will now be clearly separated from the fees members pay for their superannuation.
This separation of fees will see IFSA member super fund managers commence the process of unbundling advice and product costs in order to ‘…empower consumers with greater choice and control in how they pay for financial advice.’
Australians can now “turn on” or “turn off” financial advice fees in their superannuation …
IFSA CEO, John Brogden, said “Australians can now “turn on” or “turn off” financial advice fees in their superannuation and negotiate advice fees in super with their adviser,” adding “…support from chief executives representing the combined interests of more than ten million Australians is the start of a new era of consumer empowerment.”
Amongst other commitments in IFSA’s ratified Superannuation Member Charter, superannuation members:
- Must agree to the amount they pay for the advice they receive and how the adviser gets paid
- Will have the ability to stop paying their adviser if they wish to cease their relationship with that adviser
- Will not be asked to pay for advice they do not receive
“Critics said we would fail to deliver,” said Mr Brogden, “… but today’s announcement shows how an industry focused on the long-term financial well-being of Australians can achieve tangible results for consumers.”
IFSA expects its member companies will become compliant with the Charter as they roll over their Product Disclosure Statements, with a two-year managed transition period commencing from 1 July 2010 to ensure implementation is completed by 30 June 2012.
Click here to access a copy of IFSA’s Superannuation Member Charter.
