Australians to receive cheaper financial advice in future

16:38, April 26, 2010      

Email | Print | Subscribe | Comments | Forum 

More Australians will have access to low-cost, simple financial advice under a series of major reforms to the sector, the Australian federal government announced on Monday.

Financial Services Minister Chris Bowen said the Future of Financial Advice reforms were designed to tackle conflicts of interest that had threatened advice quality, and the mis-selling of products.

The package contained three key changes: financial planners will no longer be able to receive commissions; they'll be legally required to act in the best interest of clients and affordable financial advice services will be expanded.

Given Australia's aging population, Bowen said accessing sound advice was an important part of planning for the future.

"The expansion in the provision of low-cost, simple advice will be of particular benefit to individuals and families who may not currently have access to financial advice," Bowen told Australian Associated Press.

Requiring advisers to have their own "product neutral" charging structure, boosting the Australian Securities and Investments Commission's powers to act against doggy operators and establishing an expert panel to review professional standards were also part of the suite of reforms.

"These reforms will see Australian investors receive financial advice that is in their best interests, rather than being directed to products as a result of incentives or commissions offered to the financial adviser," Bowen said.

"I welcome the significant efforts of industry ... to remove commissions and improve professional standards - these reforms clearly support their efforts."

Most of the changes will apply from July 1, 2012.

Source: Xinhua

(Editor:黄硕)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion