Super funds bank derides planners selling reverse mortgages
The so-called ‘superannuation funds bank’, Members Equity, has issued a statement warning consumers against being sold into reverse mortgages by financial planners.
Pointing out that a recent survey of financial planners had suggested that around half intended to use reverse mortgages to grow their businesses, Members Equity Bank head of workplace business Tony Beck claimed reverse mortgages and sales commissions were a bad mix.
“In the right circumstances a reverse mortgage can be very beneficial, however, as with all products, many advisers sell them in order to pocket the commission, not because it is in the best interests of the client,” Beck claimed.
The Members Equity claim on reverse mortgages comes at the same time industry superannuation funds maintain their “compare the pair” advertising campaign, which is regarded as questioning the value of advice provided by financial planners.
The Financial Planning Association and other industry groups have vigorously contested the assertions being made by the industry funds.
AUTHOR
Mike Taylor
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
