Amendments to the Corporations Act 2001
The reforms are designed to bring clarity to the provision of financial advice and fees charged, and to ensure that financial advisors act in their clients' best interests.
These important changes include:
- banning financial advisers from accepting commissions if it is likely to influence the advice they give to a client
- clients needing to opt-in for ongoing advice fees every two years
- banning all commissions on insurance products inside superannuation (prospective ban); the ban does not currently extend to insurance products outside superannuation
- banning volume-based payments
- banning all upfront and trail commissions (and like payments)
- banning all payments of commission of $300 or more (per benefit) to a third party in exchange for services that are not directed by the client but will benefit them (with an exclusion for professional development and IT administration services where set criteria are met); these are called soft-dollar payments
- expanding a new form of limited advice called scaled advice, which can be provided by a range of advisers, including superannuation trustees, financial planners and potentially accountants, creating a level playing field for people who provide advice
- introducing a statutory 'best interest duty' for financial advice with a 'reasonable steps' qualification.
Why Maurice Blackburn?
We can help you. Maurice Blackburn has the largest superannuation, insurance and financial advice disputes department in Australia.
We offer 'no win, no fee'* arrangements for these types of cases, which means that you don’t have to pay for our legal services if we don't win. We have specialist financial lawyers in Melbourne, Sydney, Brisbane, Perth, Adelaide and throughout Australia. If you believe you are not being treated fairly by your financial adviser or another professional in this industry, contact us today to find out how we can help.