Financial Standard Comments - Govt uncertainty plagues wealth mgmt industry Uncertainty around regulations and industry reforms has shaken the wealth management industry's chief executives, with lack of confidence in Australian preparation for its ageing population, a new report has revealed. https://www.financialstandard.com.au/feed/latest?story=12158294 Fri, 05 Aug 2011 14:16:30 +1000 Fri, 05 Aug 2011 14:16:30 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Trevor () Costs associated in providing financial product advice under FoFA (Fee for Service environment) must rise for both, Individual investors and Superannuation members as these individuals/members are not businesses that are GST registered, consequently, there is a basic 10% tax impost on the advice cost/fee.
Under the much maligned commission payment system that actually covered distribution, retention and the incidental/ongoing provision of the relevant financial product advice the product provider paid the commission to the distributing financial poduct advice provider and claimed a refund for the 10% GST involved. The cost to the individual investor/member, therefore was effectively 10% lower.
Sure, tap Superannuation Funds for infrastructure projects but the government needs to protect the member from the inherent financial/investment risk of the particular infrastructure by raising the funds required via Government guaranteed, indexed infrastructure bonds.
Once the infrastructure project is a viable commercial proposition it could be privatised and the capital outlaid in the infrastructure bonds are paid out.

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]]> Trevor () Fri, 05 Aug 2011 14:16:30 +1000