The thing with fashion is that everything old becomes new again. Last week, Superannuation and Corporate Law Minister Nick Sherry dusted off his 2002 policies on commissions paid to advisers.
Following Labor’s emphatic election victory last year, Sherry has appeared at the gamut of financial services conferences speaking about consulting with industry to make sure the financial services sector was supported as well as regulated in the most effective ways possible.
He now seems a little more comfortable in his role and is reverting back to his more vocal days in opposition.
In February 2003, the ABC-TV’s Four Corners quoted Sherry as saying: “It’s human nature. If a person, if a planner, is selling a product on commission, they are going to be influenced by that because they’re paid on that basis. And that sort of practice should be banned.”
He has also targeted financial planners who work for big institutions and who channel funds into preferred suppliers.
Self-managed superannuation funds (SMSF) are most certainly also in his sights.
While the SMSF industry will continue to face increasing scrutiny from the Australian Taxation Office, concerns remain that Labor will review the gearing ban on SMSF members that was overturned last year.
SMSFs, now allowed to borrow through instalment warrants, can borrow for lifestyle assets. Speculation is mounting Sherry will review this following concern from super funds that the legislative amendment has gone much further than the Coalition intended.
SMSFs are also in our sights. As the fastest-growing superannuation structure in Australia, we are this week launching a magazine, SMSF, targeting professionals working in that area. The aim is to keep you abreast of news, tax updates and new strategies in this sector. Enjoy.
