Industry Super Australia (ISA) has joined the chorus of superannuation groups criticising draft laws to ban grandfathered trail commissions.

It says consumers would be left vulnerable to raids on their super by financial advisers.

“Let’s not forget that grandfathered commissions remove money from consumers’ accounts without their express consent,” CEO Bernie Dean said. “This is akin to stealing money.

“To claim administrative inconvenience as an excuse to try to water down what should be a blanket ban on grandfathered commissions is astounding given the disgraceful conduct exposed during the [Hayne] royal commission.”

Mr Dean blames retail super funds for persuading the Government to let grandfathered commissions continue.

“Any attempt to provide exemptions for conflicted remuneration will only erode consumer protections and leave consumers worse off,” he says.

The proposed laws would force product manufacturers to rebate commissions to clients, but allow them to decide the size of the rebate and if they deem it “just and equitable”.

These determinative factors are broad and rely on a subjective assessment, creating a risk of consumer harm, Industry Super Australia says.

It wants the rebate scheme rejected and a trail commissions ban implemented from July 1.