The FPA has labelled comments by sections of the trade union superannuation movement as alarmist, stating the association is tired of the industry funds’ one-track agenda.
FPA chief executive Mark Rantall said proponents of the opt-in argument were “running a myopic campaign that risks endangering the robust financial futures for many Australians”.
“The FPA is tired of the industry fund one-track agenda, and with the removal of commission-based payments can see no logical reason for continuing this time-consuming debate,” Rantall said.
“The opt-in proposal is bad public policy that will harm more Australians than it will benefit.
“The best interests of Australians are served by receiving the known and measurable value of an ongoing duty of care from a professional financial planning practitioner bound by a fiduciary duty to their client.”
He said the banning of commissions effectively rendered opt-in a redundant policy solution looking for a problem.
“Our members continue to improve access for all Australians to quality, affordable financial advice. Opt-in will erode these benefits by introducing administrative complexity, confusion and increased compliance costs,” he said.
Earlier this week, Rice Warner Actuaries released research stating the business impact on financial planners seeking an annual renewal for deduction of fees from their clients was negligible.
The research, commissioned by the Industry Super Network (ISN), estimated the Labor government’s opt-in proposal would cost industry $28 million of the $1.6 billion in fees they would be generating a year.
A recent Newspoll survey, conducted for ISN, found nearly 75 per cent of Australians favoured annual renewal of ongoing fees rather than the opt-out model advocated by the planning industry.
