New laws to ban financial planners from receiving commissions are an attack on small business, Federal Opposition Leader Tony Abbott says.
"It would be wrong to entirely scrap commissions," he told journalists in Sydney today.
"If the commissions are up-front and transparent I don't necessarily have a problem with that."
He said the government's plan to scrap commissions appears to be an attack on small business.
"It looks to me like another attempt by the Labor Party to have a go at small business," Mr Abbott said.
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Financial Services Minister Chris Bowen released Labor's response to the findings of a parliamentary inquiry into Australian financial products and services.
The package contains three key changes: financial planners will no longer be able to receive commissions, they'll be legally required to act in the best interest of clients and affordable financial advice services will be expanded.
Cheaper financial advice will be a reality: Bowen
Minister Bowen said the Future of Financial Advice reforms were designed to tackle conflicts of interest that had threatened advice quality, and the mis-selling of products.
"The expansion in the provision of low-cost, simple advice will be of particular benefit to individuals and families who may not currently have access to financial advice," he said.
Requiring advisers to have their own "product neutral" charging structure, boosting the Australian Securities and Investments Commission's powers to act against dodgy operators and establishing an expert panel to review professional standards are also part of the suite of reforms.
"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.
"I welcome the significant efforts of industry ... to remove commissions and improve professional standards - these reforms clearly support their efforts." Most of the changes will apply from July 1, 2012.
