Super, just super

I am not sure if it was mentioned yesterday, but it looks like the federal government is thinking about a ban on financial advisers charging commission on the 9% compulsory super contributions.

The Superannuation Minister, Nick Sherry, was forced to bring forward the announcement after the Herald yesterday revealed one option being favoured by senior ministers was a ban on financial advisers charging commissions in relation to the compulsory 9 per cent super guarantee.

They say that the over $14 billion in fees are generated from super commissions.  

I know that some on here are experienced in this area, but in my opinion this can only be a good thing. And in the current financial climate, a move in this direction would be well recieved received by the public.

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5 Responses

  1. I’d be mightily surprised if advisers are still accepting this commission. I haven’t for a decade.

    PS Joni, “i” before “e” except after “c”…..with a few exceptions:)

  2. James

    😛

    Dyslexia Rules, KO.

  3. On worries (and you will see that I mixed up my “r’s” in “worries if you look closely enough).

  4. *laugh* OK, I liked the dyslexic “worries” 🙂

    On the super funds, I bet you pounds to peanuts well over 80% of advisors are still taking fees from the super. Like most people, so long as it is legal – they don’t care too much where their money ultimately comes from.

  5. B. Tolputt (is it Brendan, I forget) there are fees and there are fees. Historically, entry fees of up to 5% were charged by super funds on contributions into their products. These contribution fees (or entry fees) were then paid by the the funds back to the advisers in the form of up front commissions. To my knowledge, although there remains in some funds the capacity to charge those fees, most advisers waive them, particularly in regards to employer contributions. As regards fees on super funds, I do sometimes charge them. It’s really up to the client whether he/she wishes to pay me by way of invoice or by way of a percentage of funds invested. I don’t dish out advice for free and nor should I be expected to. And you’re right, I really don’t much care where the money does come from.

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