Add new comment

Hedware, I believe I understand what your message is. I do agree that our Industry bodies such as the FPA have seriously let the industry down however, the Liberal Government and the consumer in the end will be the ultimate loser I suspect. I will keep going, either as a self employed Adviser or I'll be a directly employed Adviser selling product for a product provider - and getting paid from Intra Fund Advice Fees - no longer is commission allowed.
Just had a prospective client call today. Have seen her last year but I declined to take her on. She wanted advice but was not willing to pay for it at the time. Previously I would have been more than willing to help her and charge around $2,200 for the SoA and then recover the costs over the longer term with a smallish (even $1,500 pa ongoing fee and I would have been happy to help her year in year out with all her questions and advice requirements.
She went with HESTA and guess what, I appears they helped her make a nice big bring forward Non Concessional Contribution (she had recently sold her home) and left her there in Accumulation even though she is now over preservation etc. It appears HESTA has essentially increased FUM and is getting Intra Fund Advice Fees to help. She is now feeling unsettled and she is still renting and wants to buy a home and the market has dropped and she was not aware that this would affect her Superannuation balance - yes, she is in the famous HESTA BALANCED option.
Probably a good client in the makings - she is almost ready to pay me anything to help her and I probably will but it will cost - I have to cover the cost of my time and meetings, research, BID, SOA and implementation, including Centrelink etc. She has had many people tell her she would qualify for CentreLink - all she needs to do is most of her money to buy an expensive home.
If I don't help her, she might take the expensive home option - good for the Government as they get to pay her Age Pension.
If I don't help her, she will likely stay in HESTA and the Unions will have greater power over the markets, particularly as they are fast becoming the biggest aligned investor investor group. They likely will not in the end be supportive of Liberal Policies in the future. Labor will likely have plenty of funding for elections and Liberals, well, I won't be voting for them nor will many of my clients who previously I suspect would have so the Libs might be able to get votes from the Banks, that's right, money. But I suspect the Banks will always have an eye for the future and will be supportive of whoever is in their favor.
The end result I suspect is many ordinary people will no longer be able to receive advice within their budget so will end up receiving advice from the product providers in the most part - and come to us to sort out the mistakes. Not interested in these people really - but it does appear that life could be good as ordinary people are going to get themselves sold products from TV and Product Providers and find themselves . These problem could have been avoided but what I believe is conflicted advice from product providers under the cover of Intra Fund Advice not helping Advisers(as our Industry has Advisers working for Product Providers), nor is it helping many clients, but it does seem to come in very handy if you are in the market to sell product - so the problems will I suspect continue.
If the Government at some later stage wants unconflicted Advice at a reasonable cost, get product providers out of advice and then get the government to foot part of the cost - much like legal aid and Medicare. I'm no longer bothered either way.
The regulators, don't get me started. First step, make them all redundant and employ qualified personnel, not Lawyers making the rules for Advisers.
The Libs have solved nothing nor do I see their (Treasury's ideas I suspect) proposed legislation solving anything. Product Providers will still be in charge and still able to sell product under Intra Fund Advice, all paid for by all members and this advice provided to a few. Why this is not fee for no service is beyond me and I can't change that.
I see a future where prospective clients are more desperate for Non Product related advice, and I will help those that are willing to pay my fees (to cover the costs) but with far fewer clients. I'm no longer in the market for "Mum and Dad" so I guess I am defeatist - perhaps.