AWU welcomes end to finance rip-offs

Date: 26 April 2010

Unions members stand to get an extra $50,000 in their retirement funds because the Rudd Government has adopted proposals which will end dodgy rackets pushed by some financial advisers onto unsuspecting Australian workers, AWU National Secretary, Paul Howes said today.

“ The Australian Workers’ Union welcomes the Federal Government’s radical changes to the rules determining how workers and retirees pay for and receive financial advice, “ Paul Howes, said.

Workers forced to pay for financial advice they never receive

“ Australian workers have been forced for far too long to pay for financial advice they never ever receive from dodgy financial planners reaping in billions through hidden commissions,” Paul Howes said.

Mr Howes, who is a director of AustralianSuper, said the union movement has been concerned for some time that the value of members’ super accounts had been whittled away because financial advisers were acting in their own best interests – rather than their clients’ interests.

Gvt correct to step in and protect consumers

“ The Government is quite correct in stepping in to protect consumers so Australia can establish a secure financial base for our retirees.  The evidence is clear that if we don’t act to regulate this sector we face a major social crisis in the not too distant future.”

Conservative estimates suggest that four million workers pay for financial advice they never receive.

New regs to end financial planners lurks and perks

“ It is shocking to read recent data which showed that last year $1.3 billion of workers’ money was ripped away from their retirement funds, and re-directed into financial planners pockets and their profit hungry allies in the for-profit bank-controlled super funds.”

The announcements by the Minister for Financial Services, Chris Bowen, will end the lucrative lurks buried in commissions, kickbacks, percentage based fees and other incentives that financial planners used to undermine on of the greatest post-war achievements of the Australian union movement, Paul Howes said.

For further information

Contact:	Paul Howes, National Secretary
Union:	AWU
WWW:	http://www.awu.net.au/

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