The Superannuation System Review piloted by Jeremy Cooper has called for an end to commissions paid to financial planners by super funds. Great. But late. The Review set July 2012 as the deadline for the end to commissions. However, three of the country’s biggest fund managers have jumped the gun.

AMP, MLC and AxA have all dumped controversial commissions and switched to a fee-based service. The move affects around 40% of the financial planners licensed in Australia.

Commissions had never been popular with superannuation investors. Many members have been surprised to find that as they have moved their super accounts they have been paying entry fees, exit fees and then commissions to advisers.

Money paid in fees and commissions is always an important consideration when selecting super funds. It is especially important when super is is stagnant or in decline - as it has been a few times over recent years.

Whilst there have been many calls for the abolition of commissions, they have hung around like a bad smell. It’s good to see that they are finally being shown the door.

Did we need the Cooper review to bring about their demise? Probably not. But we have to applaud the end result.

So, with commissions a thing of the past, a fund member keen to save money can focus solely on fees.

How do your fund’s fees compare with the industry’s best?
Check the Savvy Top 10 Fees table.