Advice reforms to boost savings

Changes to financial advice laws will boost national savings. Industry Super Network chief executive David Whiteley said proposed changes announced on Thursday ensuring financial planners provided advice in the best interest of the client would transform the industry.

“This will increase national savings by tens of billions of dollars in the future and it means when people retire they can have tens of thousands of dollars more, there's literally billions of dollars paid in commissions to financial planners each year out of our superannuation, hundreds of millions out of compulsory superannuation.”

The changes were prompted by the high profile collapse of a series of financial service providers such as Storm, Westpoint and Trio.

The minister Bill Shorten said the proposed reforms would eliminate all commissions paid by product providers on advice to consumers.

“If you are a financial planner you are working exclusively, and are remunerated exclusively by, the customer not by various financial product providers,” he said.

Source: Sky News