Clients ‘duped’ by planners: Virgin

Colourful British billionaire Richard Branson’s Virgin group has blasted Australian financial planners as self-interested and greedy while yesterday revealing that it would be launching a new superannuation fund in time for the advent of choice of fund on July 1.

Virgin Super will be backed by $30 million by the group’s financial services venture, Virgin Money, and will be managed by Macquarie Fund Management. Back office support group Superpartners will provide administration services, while Trust Company of Australia will act as the fund’s trustee.

Announcing details of the fund, Virgin Money managing director Rohan Gamble said: “The Australian super industry is classic Virgin territory, being absolutely rife with ‘funny stuff’”.

“Our research suggests that consumers are sick of high fees, confused by complex documentation and often duped by financial planners who pretend to provide impartial advice when in reality they’re on the payrolls of the super funds.

“Choice of fund give Australian’s the chance to take control of their super and make sure their money is working for their retirement, not lining the pockets of the intermediaries.”

This is the second major initiative Virgin Money has taken in Australia, having launched a credit card here when it established in May 2003.

In the United Kingdom, Virgin Money offers a series of financial products including credit cards, personal loans, savings accounts, unit trusts, pensions, stock broking and general insurance.