- Yes (69%)
- No (25%)
- Not sure (6%)
The response to our latest poll on the implications for advice businesses associated with the banning of grandfathered investment and super commissions has been huge – in engagement, in response numbers and in the result itself.
Any adviser or advice business untouched by the banning of grandfathered investment and super commissions is in the minority. A significant majority of advisers, irrespective of their proposition (risk only, risk focussed, holistic, financial planning only or any other proposition) are clearly impacted, and many feel they are either any easy target (low-hanging fruit) or the victims of unintended consequences, caught up in what – at its foundation – is well-intended legislative change meant to serve the public interest.
…Any adviser or advice business untouched by the banning of grandfathered investment and super commissions is in the minority
But at what cost – unintended or otherwise?
Around seven in ten of the hundreds of advisers who have already voted in our poll have indicated the ending of grandfathered investment and super commissions will have a significant impact on the future viability of their business – and we’re fairly sure they’re not talking about a positive impact.
The overall tone of the comments made by advisers responding either to our report last week (see: ASIC Grilled Over Due Diligence…) or to our poll question report reflect a sense of frustration, helplessness and sometimes anger, towards what many believe to be an injustice. This sense of frustration was magnified last week by our reporting (and that of other industry media) of the seeming lack of due diligence surrounding ASIC’s rationale for supporting a ban on grandfathered investment and super commissions as soon as possible, following the recommendation made by Commissioner Hayne in the final report released in February 2019 (see: Royal Commission Financial Advice Recommendations).
As some of our adviser feedback has suggested, the legislation that will ban grandfathered investment and super commissions has yet to pass the Senate, and there have been calls for last-minute lobbying for what we referred to last week as ‘…pragmatic accommodations to existing arrangements that will allow a smoother transition away from grandfathered investment and super commissions.’
We welcome your (already) fantastic contribution to this discussion, where our poll remains open for another week…