Do you support the call for more prominent disclosure to clients of your commissions and other incentives?
- No (55%)
- Yes (42%)
- Not sure (3%)
Loading ...Our latest poll seeks your opinion on the prominence which should be given to the disclosure of your remuneration within the new financial advice regime.
Last week, MBIE released for industry comment a discussion paper on future disclosure requirements (see: MBIE Seeking Feedback…).
The rationale outlined in the discussion paper for more prominent disclosure of commissions, incentives and any material conflicts of interest is that there is asserted to exist “…a lack of transparency of some factors that can influence financial advice, including commissions and other incentives…”
…there is asserted to exist “…a lack of transparency of some factors that can influence financial advice…”
The paper states one of the key objectives of new disclosure requirements is that consumers should have access to information that will enable them to make an informed decision about whether to seek advice from a particular financial advice provider.
Current disclosure requirements differ between RFAs and AFAs, where there are more onerous requirements applied to AFA disclosure. Once the Financial Services Legislation Amendment Bill is implemented, however, there will only be a single category or definition of an adviser, which means all existing AFAs, RFAs and QFEs will be subject to the same disclosure requirements in future.
Do you support the Government’s position in calling for more prominent disclosure to clients of your remuneration details? Or do you think the balance is right at the moment? Is there room to better serve the best interests of the consumer? If so, how much more prominence should your remuneration arrangements be given?
Tell us what you think and we’ll report back to you next week…