Legislation effective 1 January 2021 cancelled any adviser commission being paid from superannuation, investment and pension accounts. This change is in line with the industry Code of Ethics, which requires any adviser fees to be agreed to by a client under terms of “free, informed and prior consent”.
In other words, a ‘service agreement’ needs to be put in place for any fees and charges from your adviser. This agreement will set out any services and advice to be provided, along with the relevant fees.
There is an exemption for insurance policies, which can continue to pay a commission to an adviser, in much the same way that mortgages will often still pay a commission to a mortgage broker.
Many financial planners around Australia have reacted to these changes by setting minimum account balances that they will deal with for clients or setting a minimum “package” of services that will often exclude people who are seeking straight-forward or irregular advice.
Advice4me has attempted to navigate this change in the most flexible way possible, knowing that many clients are not used to paying fees in this way, and have been used to all costs and charges being covered by commissions earned.
Advice4me will work with you to establish a service agreement that fits to your budget and expectations. We will not demand a minimum account balance and we will not require you to lock into long term contracts, unless that is what you specifically want and it is appropriate to the services involved.
Since the transition, we have found that many people are happy to contact the relevant institution for their super, investment or pension accounts. Others have approached us after been frustrated by long wait times and difficulty getting answers from customer service people – who by law, are not allowed to provide personal financial advice. Our fees can accommodate a single query or ongoing help with one or all of your accounts.
This change from commissions to fees (whether paid directly or through a relevant product or policy) is one of the largest changes in the industry in decades. We understand the difficulties it can cause. If you encounter frustrations in trying to access financial services and advice, call or email.
We will generally reply to emails and calls within 3 business days or sooner, if you have already established a client service agreement with us.