There should be virtually no cost associated with implementing opt in, according to the chief executive of Industry Superannuation Network (ISN), David Whiteley. In an exclusive interview with Professional Planner, Whiteley says the only piece of credible, published research on the potential cost of opt in suggests the impact will be $22 million “across the entire industry”.
“But…my view is that it really should not cost a financial planner a cent, when talking to their clients, whether face to face or over the telephone, to gain their approval to continue to charge them for the next year,” Whiteley says.
“All we’re asking financial planners to do is to gain the permission and the approval of the client to continue to charge them another year’s fees. That’s all we’re asking them to do.
“And we’re doing this on the basis that the opt in or the annual renewal is a consumer safeguard against ongoing asset-based fees, which the regulator, ASIC, ourselves, consumer groups and many, many others regard as highly equivalent to sales commissions and as also creating conflicts of interest.
“It’s regrettable the financial planning profession has not embraced this reform, because it’s a great opportunity for them.”
Why hasn’t the Industry Super network’s “compare the pair” campaign been investigated by the ACCC?
It is misleading at best.