Financial advice: Is it in your interest?

We want an end to incentives that lead financial advisers to push products on their clients.
 
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  • Updated:1 Jun 2009
 

02.What CHOICE is doing

What we want

 CHOICE has strong views about the changes needed for the financial advice industry.

Topping our list of demands is an end to the structural conflicts caused by commission, asset-based and other incentive payments.

  • These payment structures bias advice towards product based advice and strategies that involve gearing.
  • They can also affect the quality of advice. For example, an Australian Securities & Investments Commission investigation in 2006 revealed consumers who received commission-based advice were six times more likely to receive bad advice.

For consumers to have access to reliable, high-quality financial advice, a broad reform agenda is needed. First, commissions and other conflicted remunerations must go.

What we're doing

A major parliamentary inquiry is now under way to consider a range of such problems in the financial advice industry. CHOICE is calling on the committee to ban commission-based remuneration and other conflicted remuneration to advisers.

What you can do

CHOICE has made a submission to the Financial Planning Association's consultation on planner remuneration calling for greater reforms in the financial planning industry.

Pushing for these sorts of changes means CHOICE will be going head-to-head with major corporate interests. We need you to take action to support our campaign. 

  • Send us your story  Have you or a friend or family member been burned by a bad commission? Has bad advice left you hurting? We want to include as many stories as possible in our submission to the parliamentary inquiry. 
  • Sign our online petition  We're calling on Prime Minister Kevin Rudd to ban commission-based remuneration in the advice industry. 
 

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