It will take a while for the dust to settle on the Future of Financial Advice reform package, which passed the House of Reps last night after negotiations between the independents and Bill Shorten.
However, despite press reports to the contrary, the compromise agreed appears to preserve the critical opt-in requirement for financial advice fees.
In the final bill passed last night, the requirement for financial planners to obtain agreement to financial advice fees every two years remains. That opt-in measure is designed to end the highly damaging practice of financial planners relying on clients’ disengagement to charge continuing fees for advice clients neither seek nor want, which costs Australians thousands of dollars a year.
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