ISA has provided feedback on the Financial Services Royal Commission exposure draft legislation aimed at improving consumer protections.
This submission focuses on the draft legislation to implement the following Royal Commission recommendations:
- Recommendation 2.1 to enhance the existing ongoing fee arrangement provisions;
- Recommendation 2.2 to require entities who are authorised to provide personal advice to a retail client to disclose in writing to the client where they are not independent and why that is not the case;
- Recommendation 3.2 to remove superannuation trustee’s capacity to charge advice fees from MySuper products;
- Recommendation 3.3 to remove the capacity of a superannuation trustee to charge advice fees to a member unless certain conditions are satisfied, including the new requirements outlined in relation to Recommendation 2.1 for ongoing fee arrangements; and
- Recommendation 3.4 to prohibit the hawking of superannuation products.
The submission and its related attachment can be read here:
Submission: Financial Services Royal Commission – exposure draft legislation
Attachment 1: Pre-retirement and retirement advice needs – a review of existing research