Bruce’s thoughts on the Royal Commission
Whilst I’ve certainly been aware of issues in the financial planning industry, I have to admit to being shocked by some of the revelations at the Royal Commission and the extent of the problems identified. Some of our largest banks and financial institutions clearly have some significant issues that need to be addressed urgently.
One institution in the spotlight, has their advisers charging ongoing advice fees but have not delivered any service for these fees for, in some cases, many years. This is clearly not acceptable.
Personally, I have always had a concern about “product manufacturers”, that is banks, fund managers and insurance companies, owning, controlling, directing or influencing financial planners. I feel that this is not the best approach, as it can cause real or perceived conflicts of interests as regulations around financial advice require acting in the “best interests” of clients – not in the “best interests” of the “controlling” product manufacturers.
At Highview Accounting and Financial we aren’t owned or licenced by one of the big banks or big fund managers and I think this is important. We are not pressured to use a particular fund manager, super fund or insurer’s product. We could be described as being “agnostic” towards product, without a particular barrow to push in regard to any particular fund manager, insurer or product manufacturer.
We believe that where clients sign a Terms of Engagement for Ongoing Advice, they should actually receive those services. More importantly, clients need to derive value that is significantly higher than the fee paid.
If you have concerns arising from the Royal Commission and are wondering about your current arrangements, please feel free to contact me for a chat.
Bruce Chisholm
Financial Planner
Highview Accounting & Financial – Cranbourne