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Grandfathered FA commissions are of little value to the consumer

Tuesday 15 May 2018

Financial Standard

The Financial Planning Association and the Australian Securities and Investments Commission both agree that grandfathered advice commissions are of little value to the consumer.

In their submission to the Royal Commission, the corporate regulator indicated that the annual review was sufficient for ongoing service fees to be charged to a customer.

The Financial Standard continued that, while the FPA agreed with ASIC, they believed the industry might need a three-year timeline to phase out the practice.