In terms of other payments, that’s something which I think comes into the realm of the professional advisory committee. That would deal with soft dollars. So soft dollars – I’ve expressed the continuum of soft dollars as a pen with your product’s name written on it, which you give to advisers, ranging to a conference in the Bahamas at the end of the year. Now, they’re the range of soft dollar activities, which the professional advisory committee will need to work with ASIC in just determining what’s in and what’s out. And in terms of remuneration of in-house employees, I think there’s a good bit of work to be done there, just in terms of seeing that right balance. Garry Weaven: If it is the common thing to have professional best interest advisers only recommend your product if you pay a fee to someone to get on the shelf, industry funds will have to look very hard at paying that fee.

So the cost per member will go up. So just keep that in mind, because this is a once-in-a-lifetime chance to get this right. And everyone’s going to say, “Well, that’s the rules. They’re the rules, and we’re going to compete by the rules”. Don Russell: There’s one tricky issue which we haven’t really focused on, and it’s that the advice stage, there’s the accumulation phase and then there’s the retirement phase. And in the retirement phase there’s an overwhelming case that people need advice, and it’s not just advice necessarily about products. There’s 70 to 80 per cent of the population will still have a relationship with Centrelink, and there’s clearly people need advice to make sure that how they structure their retirement income arrangements does have to be done in the context of Centrelink, and most people need advice on that. Tony Cole: Either that, or we need a My Super approach to the retirement phase. Don Russell: No, no, because there’s advice that people need to know on how to structure their arrangements, to make sure that they’re not doing something silly.

Ann-Marie Corboy: Remember that a great number of them, Don, won’t have the account balance to need it. Don Russell: For people who have a lump up to about $200,000, they’re going to qualify for the full pension, and so in that sense, the government doesn’t really need to be concerned about annuities or whatever, because these people are going to get the full pension. But there’s another group from about $200,000 up to about $500,000 and that’s our members. This is a group of people, the private sector is not that interested in them, but it’s very important that they get in the context of how they structure their arrangements with Centrelink, because most of our members will be in receipt of pension.

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