Take Action: Sign the Petition Today!
Stand Against:
Higher Costs, Reduced Access, More Red Tape
The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill, introduced in March, unexpectedly alters provisions around advice fee deductions from superannuation funds. Section 99FA of the bill, as currently worded, will likely reduce access to quality financial advice and increase its cost due to additional red tape.
The new provisions under s99FA introduce substantial administrative burdens which may require superannuation funds to rigorously assess the member’s justification for advice payments and the proportionality of fees - forcing trustees to review every advice document. This subjective process duplicates AFSL responsibilities and will increase costs for all members.
Should trustees be compelled to scrutinise every single advice document as per the proposed changes, the additional cost burden - estimated at about $400 per member request - will siphon away hundreds of millions of dollars from Australians’ retirement savings annually.
The Financial Advice Association Australia (FAAA), the Financial Services Council (FSC) and The Adviser Association have all called for explicit changes to the provisions in the bill to ensure the regulatory burden on trustees and/or advisers does not increase, which is the opposite of what QAR lead Michelle Levy sought to achieve. Please sign our petition on change.org to ensure the Minister does not dismiss these concerns without amending the bill or explaining the consumer protections these changes supposedly provide.
We call on the parliament to amend the bill to fix s99FA, which adds nothing but confusion, uncertainty, and cost increases for consumers.
Sign Change.org Petition
Professional Planner
Independent Financial Adviser
Money Management
