How CHOICE supporters fought for essential consumer protections against the financial services industry
We took on big business – and won
Many people seek financial advice at some point during their lives: to help buy a family home, invest for a rainy day or save for a comfortable retirement.
But the financial advice industry is notorious for acting in its own interest instead of looking after the people who are asking for help. And sadly, thousands of Australians have paid the price for poor financial advice, losing their entire life savings.
In 2019, the industry still receives $2 billion each year in these dodgy commissions – for doing no work
For decades, CHOICE members and supporters have championed laws that keep this industry accountable to consumers – despite major corporate opposition and pressure.
One of the most egregious issues we spotted was that of hidden ongoing commissions being charged within super, investment and insurance products, despite no service being provided to the customer.
In 2013, we had a major win when the government banned commissions, but the advice industry fought hard and won a loophole that would let them continue to charge commissions that were in place before 2013.
In 2019, the industry still receives $2 billion each year in these dodgy commissions – for doing no work. But from 2021, these will finally be banned too.
