Kew, Australia (PressExposure) July 06, 2009 -- An increasing number of submissions from financial advisers being received by the Parliamentary Joint Committee's "Inquiry into Financial Products and Services in Australia" are calling for an end to commissions paid to financial advisers. The Inquiry is investigating recent financial product and service provider collapses such as Storm Financial and Opes Prime. Although still dominated by submissions from investors that have been hurt by the recent market turmoil and particularly the collapse of Storm Financial, an increasing number of financial advisers are also calling for the Committee to instigate big changes in the industry.
In our own submission we have called on the PJC to recommend that;
- financial advisers be regarded as having a fiduciary relationship with their clients, requiring them to put the needs of their clients before their own or their employers, - commissions are abolished entirely or that a delineation between financial advisers and financial salespeople is introduced, and - advisers should be required to conduct a comprehensive assessment of the available investment options rather than just limiting themselves to a small number of potentially affiliated funds.
In reference to Storm Financial we have also criticised asset-based advice fees which can give the adviser an incentive to recommend potentially inappropriate gearing strategies.
The Committee is due to deliver it's recommendations in November this year.
All submissions received by the Committee to date can be found at [http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sublist.htm]
Our own submission can be downloaded at [http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sub40.pdf]
For more information I can be contacted any time on 0400 060 127.