The Ripoll Inquiry, established because of recent financial product and service provider collapses, reviewed the role played by commission arrangements for product sales and advice, the potential for conflicts of interest and the need for appropriate disclosure and remuneration models for financial advisers.

The focus of the Inquiry was on non-superannuation products and services, but its recommendations may have flow-on effects for super fund members in the future.

The three key reforms proposed by the Government in response to the Inquiry are:

  • A ban on conflicted remuneration structures, including commissions and any form of volume based payment. In addition, percentage-based fees (know as assets under management fees) can only be charged on ungeared products or investment amounts.
  • Introducing a statutory fiduciary duty for financial advisers requiring them to act in the best interests of their clients when providing personal advice to retail clients
  • Introducing an adviser charging regime, with flexible options for consumers paying for advice and requirements for retail clients to agree to the fees and to annually renew (by opting in) to an adviser’s continued services

As these reforms become law, we will give you further details.


John Hackett
Member Services Manager

Phone 1300 128 751 (Local call)