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The Investment and Financial Services Association (IFSA) yesterday unveiled plans to scrap commission-based payments for financial planners in lieu of fee-for-service by July 2010.
The Association’s plans follow recommendations from the Financial Planning Association of Australia (FPA) earlier this year that the industry moves towards a fee-for-service remuneration model.
“Under the new regime consumers will be empowered by knowing exactly how much they are paying for financial advice in their superannuation,” IFSA chief executive Richard Gilbert said yesterday.
Members will also be able to negotiate the value they receive for the advice fees they pay, he said.
The trend away from commission-based payments towards a fee-based structure has also gained ground with mortgage brokers as commission cuts bite into broker remuneration and the industry looks to build a more professional image and secure revenue streams.
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