Planner proposes answers to ending rip-offs
Following the startling revelations of the extent of institutionalised misconduct in the financial advice industry exposed by the Royal Commission this week, a boutique financial planner thinks that he has the answers for clients still wanting advice without being ripped off.
Managing director and senior financial planners at boutique firm Profile Financial Services, Phillip Win, said that the Commission showed that there were some key considerations that clients of financial planners should critically assess.
His recommendations came down to customers being aware of fees and services and holding planners to account through that knowledge.
Win said that consumers should read Fee Disclosure Statements (FDSs), required since the Future of Financial Advice reforms came into effect, carefully to see the fee payable and the services agreed for that fee.
Clients should always receive statements on their investments and insurances directly from the institution providing the products.
Win said that people who had been clients of planners since 1 July, 2012 should have received a minimum of five FDSs by now.
While commissions may have been built into existing cost structures and would not need to be disclosed in an FDS, Win said that clients were still entitled to find out what commission their planners received “by simply asking”.
Win also said that clients needed to hold their planners accountable as to whether they were “attached” to the products they were promoting.
“Until you contact them and ask them how much and what services they are providing for the services they are receiving, the gravy train will continue,” he said.
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