{"id":11724,"date":"2011-08-03T16:45:12","date_gmt":"2011-08-03T06:45:12","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=11724"},"modified":"2021-04-15T10:18:19","modified_gmt":"2021-04-15T00:18:19","slug":"risk-commissions-in-super-may-stay-shorten","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/08\/03\/risk-commissions-in-super-may-stay-shorten\/","title":{"rendered":"Risk Commissions in Super May Stay – Shorten"},"content":{"rendered":"

Financial Services Minister Bill Shorten<\/strong> has today said\u00a0the\u00a0Government is\u00a0reconsidering its position on banning risk commissions on individual superannuation advice.<\/p>\n

Speaking at the Financial Services Council’s Annual Conference in Queensland, Mr Shorten reiterated his Government’s determination to proceed with opt-in regulations as part of its Future of Financial Advice (FoFA) reform package but said he was reviewing his position on the banning of risk commissions in super as a result of feedback he has received from the financial services sector.<\/p>\n

Mr Shorten’s comments today follow earlier indications that he was re-considering the Government’s position on risk commissions in super.\u00a0 At an AFA function at the end of June, Mr Shorten said he was “… listening carefully to what people are saying…”\u00a0and\u00a0did not rule out a review of this policy.<\/p>\n

Shadow Financial Services Minister Mathias Cormann<\/strong> told riskinfo today\u00a0he had expected some\u00a0kind of shift\u00a0from\u00a0Minister Shorten on\u00a0this particular element of FoFA\u00a0because it is “such bad policy”.<\/p>\n

“Of course, those people who get insurance automatically through their superannuation should not be charged commissions\u00a0for that.\u00a0 But those who access financial advice should not be disadvantaged by banning commissions.\u00a0 We do not see commissions as conflicted remuneration.<\/p>\n

“Bill Shorten needs to remember that his job is to act in the public interest, not to be the agent for one segment of the financial services market,” Senator Cormann said.<\/p>\n

AFA CEO Richard Klipin<\/strong> has told riskinfo he believes\u00a0Mr Shorten has been taking wise counsel on a number of issues and that it appears by his comments this afternoon there may be a consumer-focussed outcome on the question of whether to allow the continuation of risk commissions in superannuation for individual advice.<\/p>\n

FPA General Manager for Policy and Government Relations, Dante De Gori<\/strong>, said the association welcomed the comments.<\/p>\n

“The FPA has been opposed to this aspect of the reforms from the first moment it was announced.”\u00a0<\/p>\n

He said the narrowing of the ban would still protect those who are not actively engaged with their superannuation and do not receive advice.\u00a0 “No-one agrees with a situation where commissions are paid but no service is received,” he told riskinfo.<\/p>\n

He added that the FPA was particularly proud of its efforts in working with the Government to highlight the issues with the proposed ban.\u00a0 “It was great to receive that acknowledgement by Minister Shorten in a public forum for the work the FPA has done.”<\/p>\n

While the Minister seems determined to move forward with opt-in, Mr De Gori said the FPA would not give up on this issue.\u00a0 “There will continue to be pressure from the FPA on opt-in because we do not think it is necessary in the context of a Best Interest Duty,” he said.<\/ins><\/p>\n

The Government is now looking to release draft FoFA legislation in September, having previously targeted August for its release.<\/p>\n","protected":false},"excerpt":{"rendered":"

Financial Services Minister Bill Shorten has today said\u00a0the\u00a0Government is\u00a0reconsidering its position on banning risk commissions on individual superannuation advice.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":["post-11724","post","type-post","status-publish","format-standard","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/11724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=11724"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/11724\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=11724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=11724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=11724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}