The old school parameters for financial planners were an absolute wrought. When i started in 2007 i would reguarly see AMP clients paying 5% contribution fee and 2% management fees to an adviser they had never heard of. This was not limited to AMP, every adviser with every Retail Super provider did this.
I instantly thought, this is a complete wrought and needs to be stopped. However the AFA and FSC did nothing. I grew disgusted that all these old and uneducated advisers had grown rich by doing nothing and providing no benefit to the consumer. I could not however blame them. They were playing the game by the rules and their regulatory bodies were too self interested to do anything about it.
Now 10 years down the track these advisers are 60 years old and have 7 Ferraris each and dont care. Whilst these advisers ripped off clients to make their fortunes and are pretty much bad people, they cannot be blamed.
Its our industry bodies who allowed them to ruin our industry and these bodies must be held accountable. Finally.
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