Media release

28 April 2011

Seniors welcome changes to financial advice reforms

Older Australians have today welcomed the Federal Government’s announcement of financial advice reforms which includes better protection for consumers receiving information from financial advisers.

Announced by Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, the changes are detailed in the Future of Financial Advice reforms.

Key elements in the reforms include a requirement for financial advisers to get clients to ‘opt-in' every two years if they wish to continue to receive ongoing advice; banning all commissions on risk insurance inside superannuation and a broad ban on volume-based payments.

National Seniors chief executive Michael O’Neill welcomed the changes after calling for better protection for consumers, including transparency on fees.

“After the collapse of Storm, Trio, Westpoint and other financial service providers, it was clear that trust in the sector had certainly diminished,’’ O’Neill said.

“Older Australians are a particularly vulnerable group when it comes to receiving financial advice so we believe these changes are a welcome step in the interest of all consumers.”

Last year O’Neill also spoke at the Conference of Major Super Funds and delivered the strong message that older Australians had lost faith in their super funds and much of it was due to the poor customer service and financial advice they had received.

With around a quarter of a million members Australia-wide, National Seniors Australia is the consumer lobby for the over-50s. It is the fourth largest organisation of its type in the world.