Internal conflict to let down a generation of investors
Infighting within the financial services sector could let down a generation of investors, a leading business consultant believes.
T&C Consulting's Tony McDonald, warned the profession should be careful what it wishes for, as debate rages between rival organisations over the Future of Financial Advice reforms.
"There's a fair bit of infighting [going on at the moment] and you kind of expect that given what's at stake, particularly for some of the larger organisations in the industry," he said.
"We all understand the moral arguments and the points of principle that are going on in the industry.
"But at the time, with this trench warfare that seems to be going on, you've got to ask yourself whether that isn't going have the unintended consequence of the consumer sitting on the sidelines looking at this fight going on and saying ‘I just don't want to play'.
"The tragedy is that by demonising [financial] advice we run the risk that people aren't going to seek good advice and therefore you are going to let down a generation of people who should be getting advice."
McDonald said that while internal disputes within the profession threatened to drive consumers away from seeking advice, the majority of those who have sought advice have been happy with the results.
"Statistically, and we know there are exceptions, it looks like when people do get advised they are generally happy and there are generally getting value and they are generally getting better outcomes," he said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
