Fee for Service update

26-Apr-2010 Ban on Commissions - Media Release 26th April 2010

The Minister for Financial Services, Chris Brown MP announced reforms to financial advice that aim to tackle the conflicts of interest that threaten the quality of financial advice provided by financial planners.

One of the reforms that will apply from 1st July 2012 is a prospective ban on conflicted remuneration structures, including commissions and any form of volume based payments.

The requirement of this reform is for financial planners to have a pricing structure which is "product neutral".

A "product neutral" pricing regime means financial planners will need to agree their fees directly with clients and disclose in a clear manner how the fees were calculated.

A Fee for Service model of remuneration for financial planning practice is the best way to achieve a "product neutral" pricing regime.

Successfully implementing a Fee for Service model of remuneration may take up to 2 years. To be ready for the 1st July 2012 deadline, your practice should consider the change now to a Fee for Service model remuneration if it has not already done so.

Learn how Time & Data Managment can assist you with implementing a Fee for Service model.

Full Media Release on Overhaul of Financial Advice

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