Australian taxation advice laws are being altered to ensure citizens get balanced and impartial help with their affairs.
Financial advisers will be banned from taking commissions on products they sell in a bid to protect consumers by the Rudd government.
They will also be required to put the interests of their clients ahead of their own financial situation, or face penalties.
Financial services minister Chris Bowen announced the changes, which follow recommendations made by the inquiry into the collapse of Storm Financial and other companies, which resulted in billions of dollars of losses for Australians, with many seeing their retirement nest eggs wiped out.
"These reforms will see Australian investors receive financial advice that is in their best interests, rather than being directed to products as a result of incentives or commissions offered to the financial adviser," Mr Bowen said.
Changes are also set to be made to the Australian taxation system for income returns, with suggestions for pre-filled forms to be issued to most employees, the Australian reported.
Posted by Steve Douglas
Financial advisers will be banned from taking commissions on products they sell in a bid to protect consumers by the Rudd government.
They will also be required to put the interests of their clients ahead of their own financial situation, or face penalties.
Financial services minister Chris Bowen announced the changes, which follow recommendations made by the inquiry into the collapse of Storm Financial and other companies, which resulted in billions of dollars of losses for Australians, with many seeing their retirement nest eggs wiped out.
"These reforms will see Australian investors receive financial advice that is in their best interests, rather than being directed to products as a result of incentives or commissions offered to the financial adviser," Mr Bowen said.
Changes are also set to be made to the Australian taxation system for income returns, with suggestions for pre-filled forms to be issued to most employees, the Australian reported.
Posted by Steve Douglas
