The proposal by the Investment and Financial Services Association (IFSA) for its superannuation members to start moving away from commission-based products by mid-2010 has been welcomed by financial planning associations, as it will support their own ambitions to get rid of commissions paid to advisers by 2012.
"Their timing ahead of the FPA is entirely appropriate, because we need products that are able to facilitate the changes," FPA chief executive Jo-Anne Bloch said.
"It is better to have the products, systems and capacity in place to facilitate fee-for-service ahead of any changes that we might make."
The FPA launched a discussion paper that proposes a transition away from commissions paid to advisers last month.
Bloch said the financial planning industry needed more time to make the transition than providers of superannuation products, as the changes will have a more far-reaching effect on the planning industry.
"We have a lot more to consider," Bloch said. "We have to consider business models, practice issues and income streams, plus we are advocating this beyond superannuation."
The Association of Financial Advisers (AFA) was also positive on IFSA's proposals.
"We have welcomed the new charter, because it means that all superannuation providers will now operate in a level playing field," AFA chief executive Richard Klipin said.
A level playing field would assist in achieving the best outcome for clients, he said.
MLC and AMP, who are both IFSA members, also supported the proposals.
