Super trustees want ban on commissions

The Australian Institute of Superannuation Trustees want bans to be placed on commission payments for the sale of superannuation products. Poor advice from the financial planning industry, which relies on commissions, had led many people to lose part or all of their retirement nest-eggs, AIST says.

As a result, an increasing number of people now come to the super funds for advice on investing their lump sums to receive income streams. Forty-three per cent of super funds now provide investment advice compared with 36 per cent in 2001.

The AIST's CEO Susan Ryan said consumers need to be sure they're getting financial advice that's suited to their particular situation, and not just “a big bank that wants to flog a product”.

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