Australian election a win for advisers
Incumbent PM Morrison clinched victory in the closely fought election at the weekend, despite recent polls predicting a narrow Labor. The news will be welcomed by advisers, as Labor planned to enforce a stricter policy on adviser remuneration than its political rivals in the wake of the Royal Commission and Hayne Report.
Labor planned to fix upfront commissions at 1.1% and ban trail commission from 2020 as part of its overhaul of the financial services sector. The regulation would have forced Australia's big four into sweeping changes, and would likely have had a knock-on effect to the Aussie-owned New Zealand "big four".
Instead, the Coalition will stick to watered-down plans to review upfront and trail commission in three years' time, a move widely seen as kicking the can down the road in the aftermath of the Royal Commission.
Advisers on both sides of the Tasman will be relieved with the outcome of the election, after the Hayne Report proposed a user-pays model for brokers, and bans on all forms of lender-to-adviser commission.
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