MLC backs the FPA's Financial Planner Remuneration Principles

01/05/2009

MLC today welcomed the launch of the FPA's Financial Planner Remuneration consultation paper, stating it was a significant step forward for the financial advice industry.

General Manager of MLC Advice Solutions, Greg Miller said, "the community's concerns around financial planner remuneration continue to be a barrier to financial advice being recognised as a valuable professional service."

"The FPA's consultation paper proposes clear and sensible principles for planner remuneration which will go a long way in moving the industry forward.

"Separating the cost of financial advice from the cost of a product is critical in managing potential conflicts of interest and building trust and transparency in the financial advice industry.

"Being able to stop paying the advice fee is also a critical principle - in no other industry would we question the right for a customer to stop paying for services if they no longer want them."

"At MLC, we started working with advisers in our advice businesses, including Godfrey Pembroke, Apogee Financial Planning, Garvan Financial Planning, MLC Financial Planning and NAB Financial Planning, to transition to a fee for service model back in 2006 and launched a commission free range of super, pension and investment products around the same time.

"Three years later, around 70% of new MLC investments business is now being written on a no commissions basis.

"MLC encourages financial planners to adopt the FPA's principles, and product manufacturers to support the implementation of these principles with commission free products," Mr Miller said.

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Stacey Mitchell		Kristen Allen
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