{"id":6560,"date":"2010-06-08T16:00:57","date_gmt":"2010-06-08T06:00:57","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=6560"},"modified":"2020-06-05T10:06:38","modified_gmt":"2020-06-05T00:06:38","slug":"confusion-over-timing-of-adviser-charging-regime","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/06\/08\/confusion-over-timing-of-adviser-charging-regime\/","title":{"rendered":"Confusion Over Timing of Adviser Charging Regime"},"content":{"rendered":"

Confusion reigns over the timing of the introduction of the Government’s Adviser Charging Regime, a key plank in its Future of Financial Advice reform initiatives, which will require clients to opt in to an annual adviser fee renewal.<\/p>\n

An information pack outlining\u00a0the Government’s Future of Financial Advice<\/a> initiatives\u00a0details\u00a0key reforms\u00a0which the document says ‘… will apply from 1 July 2012.’\u00a0 One of these key reforms is the introduction of the Adviser Charging regime.<\/p>\n

Although this statement says adviser charging will apply from 1 July 2012,\u00a0is this correct?<\/p>\n

Financial Services Minister, Chris Bowen<\/strong>,\u00a0issued a\u00a0media release\u00a0last week, where he refers to a transcript from an interview he conducted on the day of the announcement of the Future of Financial Advice reforms, in which he said:<\/p>\n

“… sometimes you can sign your life away but later you realise that you just aren’t getting value for money anymore.\u00a0 That’s not the way it should be.\u00a0 So we will institute a system, so maybe after a few years, you have the option to renew that annually, to ensure that you are getting the value for money that you want.<\/em>”<\/p>\n

Within the context of the interview (click here<\/a> for the full transcript) it is not clear whether Mr Bowen is refering to ‘maybe after a few years’<\/em> after the advice has been in place or ‘maybe after a few years’<\/em> after\u00a01 July\u00a02012 or ‘maybe after a few years’<\/em> from today.<\/p>\n

Mr Bowen issued his statement last week in response to comments made by Shadow Financial Services Minister, Luke Hartsuyker<\/strong>, which criticised the Government over what it sees as backflips on elements of the Future of Financial Advice reforms.<\/p>\n

However, Mr Hartsuyker’s\u00a0media release appears not to be criticising\u00a0the timing of the implementation of Adviser Charging, but rather the frequency of when this should occur.\u00a0\u00a0 The Shadow Minister said that, as reported in print media:<\/p>\n

“… discussions between the Minister and those in the industry have shown that the Labor Government is looking at a number of changes to the original proposals. This includes significantly extending the time intervals at which investors must opt in to percentage based fees paid from the manufacturer<\/em>.”<\/p>\n

So, what exactly is in contention?\u00a0 The timing of the implementation of Adviser Charging, or the\u00a0intervals at which Adviser Charging should occur?\u00a0 Or both?<\/p>\n

If confusion exists at this level, it would seem a difficult task to expect financial advisers to understand exactly what is going on.<\/p>\n

Ongoing consultation between Government and the financial services industry will help determine how Adviser Charging will be rolled out, and advisers will reasonably expect to be included in the consultation process and have details clearly and unambiguously communicated to them.<\/p>\n","protected":false},"excerpt":{"rendered":"

Confusion reigns over the timing of the introduction of the Government’s Adviser Charging Regime, a key plank in its Future of Financial Advice reform initiatives, which will require clients to opt in to an annual adviser fee renewal.<\/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-6560","post","type-post","status-publish","format-standard","category-compliance-regulation","category-remuneration","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6560","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=6560"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6560\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=6560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=6560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=6560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}