New story from Risk.net published by Mortimer Goth May 10, 2010

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Australian advisory business faces major shake-up

The Australian financial advisory sector is in for a shake-up, as the government has moved to clamp down on remuneration structures that are currently said to jeopardise the quality of advice provided to Australian investors. The Future of Financial Advice reforms, announced on April 26, will ban remuneration structures including commissions and volume-based payments and limit the use of percentage-based or asset-under-management fees to ungeared products as of July 1, 2012. It will also include the introduction of a statutory fiduciary duty to ensure financial advisers must act in the best interests of their clients and strengthen the powers of the Australian Securities and Investments Commission (Asic) to act against ‘unscrupulous operators’. More: http://tinyurl.com/compensation378