A revised superannuation member charter which aims to drive cost savings and instigate cultural change was announced by the Investment and Financial Services Association (IFSA) yesterday.
Changes to the new charter are designed to dispel consumer perceptions that retail funds are recommended by advisers only because of commission.
"What we hope to do is to smash the perception of the hidden charge by turning it back into the hands of the consumer," IFSA chief executive John Brogden said.
Colonial First State chief executive Brian Bissaker said this step is an effort to get people to recognise that there is value in financial advice and to focus on product value rather than the issue of hidden commissions.
Remuneration for financial advisers will be unbundled from product recommendation.
In the new charter, clients are now empowered with the ability to "turn on" or "turn off" fees to financial advisers, in addition to being able to negotiate fees in super with their advisers.
This means superannuation members who have a personal financial adviser will be asked to agree to both the amount and method of payment.
In addition, members will also have the ability to stop paying their adviser if they wish to cease their relationship with their adviser.
Greater consistency in calculating performance and fees of investment options across the board will also be standardised under the new charter.
As part of the new reforms, superannuation members will have online access to investment options performance information and comparisons every quarter.
Brogden said the changes will drive adviser business models to become more transparent.
The peak body expects the charter to formally come into effect on 1 July 2010.
