A key figure in the financial planning industry has called for more transparency in remuneration models. Andrew Creaser, Deputy MD of the 400-strong Genesys network, says there is a strong public perception that commissions are linked to inappropriate advice.

“I would like to see our system cleaned up,” he told The Australian newspaper.

He says the Australian Securities and Investments Commission should be called on to actively manage conflicts of interest in the financial planning industry.

His comments were not as forthright as recent remarks by MLC CEO Steve Tucker, who endorses complete abandonment of commission-based payments.

The Financial Planning Association is matching its words with at least some action. Its “Principles for Managing Conflicts of Interest” will become enforceable throughout the membership from July 1. The new rules, which include regular disclosure of ongoing advice fees, aim to ensure clients get quality information to make the best possible investment decisions.