The Royal Commission into the Banks is having a good old crack at (among others) the Financial Advice industry and we have no qualms with it at all. ‘Go Hard’ we say!
Many years ago, the Banks and Insurers deduced that the best way to get their products flogged was to take ownership of adviser groups, as well as massively bolster the advisers they employed. At this time, you began seeing a Financial Adviser sitting inside your local bank branch, and bank shareholders loved it as it boosted profits nicely and seemed to be a strategy without detractors. However, now there is a complete backflip in strategy and the banks are making headlines each day when they report their moves distancing themselves from the advice industry, with the Corporate Regulator not far behind.
The reason for this is they managed to completely bastardise the concept of advice and the basic premise that your adviser works for you. When you see an Adviser in CBA, NAB, ANZ, WBC or any other Adviser aligned to a product manufacturer, how do you know they’re not just meeting their sales target? It is inherently conflicted.
These Corporations did a very good job of making such people appear to be working for you, but it’s rather noisily unravelling now, and we will all be the better for it.
The information contained in this document is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.