Call for compulsory annual reporting on adviser trails

Superannuation funds should be required by law to inform members if they are being subjected to the payment of trailing commissions to financial advisers, according to the nation’s largest industry superannuation fund, AustralianSuper.

The big fund also wants grandfathered commissions to be banned.

The fund has used a submission to the Productivity Commission to back the proposition that the “the Australian Government should require superannuation funds to clearly inform, on an annual basis, all members who are subject to trailing financial adviser commissions”.

Related News:

At the same time as the future of grandfathered commissions come under scrutiny as a result of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, AustralianSuper said it “supports any proposal that seeks to make it clear to members that they are paying trailing commissions to a financial adviser”.

“AustralianSuper suggests that this may not be sufficient to protect members, particularly those in cognitive decline who continue to pay a trailing commission,” the submission said. “Also, this does not address the issue of what action a member may initiate if they do not want to pay trail commissions anymore.”

“AustralianSuper supports appropriate legislative measures that would ban grandfathered trailing commissions.”

Related Content

Dixon Advisory backs super changes for over 65s

Leading financial advisory firm, Dixon Advisory, has backed measures announced as part of tonight’s Federal Budget aimed at helping older Australian...Read more

Senate Committee recommends increasing consumers’ rights

Consumers can expect improved justice and recourse should they be victims of wrongdoing by the financial services industry as the result of a Senate C...Read more

Advisers need more transparency to promote ESG

Limited transparency and disclosure in the Australian superannuation space is preventing advisers from properly advising on ethical and environment, s...Read more



Add new comment