The heat turned up another notch on both the financial planning industry and ASIC this week, following Sydney Morning Herald’s investigation into NAB Wealth.
Adviser Ratings will launch phase 2 of its website in coming weeks, which will further help to redress the information imbalance between consumers and advisers. As Christopher Zinn has stated in our keynote article this week, the actions of certain rotten berries in the industry are not only impacting the trustworthiness of the good guys but also preventing consumers from seeking financial advice.
The challenges for the profession are not just limited to the actions of rogue planners, but incoming and competing technologies and consumer preferences in seeking advice. The latter point though also presents opportunities for those within the planning industry that are willing to adapt - refer to David Rae's piece.
One of those technology enablers are ratings and review platforms, such as ours - Harvard research found that those organisations who utilise such platforms see a significant uptick in revenues. As part of our rollout in phase 2 and upcoming campaign for the Adviser Ratings website, there will be a significant focus on those advisers who have embraced reviews as part of their profile.
We want consumers to re-engage with the financial planning industry and connect with trustworthy and competent advisers - reviews from their own customers is just one way this can be achieved.
Angus
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Comments6
"No we haven't, Tony. Your point is different, but does not make ours wrong. There is rock-solid research showing that a bank client will get a bank product over 80% of the time, but with your solution we'll just have crooked managers in the non-banks following in the crooked footsteps of the bank senior management. Jail the crooks: get their attention and get ASIC to get off its duff and stop approving shonky, complicated products - and from colluding with the banks (hope your ears are burning, Tanzer!). Angus: what a pithy, meaningless example of PR speak rubbish! Go play with your little register."
Hilda Benjamin 21:07 on 26 Feb 15
"I am sorry but you have all missed the point. The problem is not the strategies and practices implemented by large institutions, it is the fact that product providers (i.e. banks, investment managers, etc) are allowed to provide advice. That is not advice, it is sales. Financial advisers need to be able to provide unbiased, objective advice that is in the best interests of the consumer - that is IMPOSSIBLE to do if you are an employee (or otherwise remunerated) of the product provider. If I asked a Ford salesperson for his opinion on Ford cars what do you think he would say - buy a Holden? I don't think so. Why do we think it is any different in the financial planning industry. Ban the product providers from providing advice - that is the only way to avoid the pain we are all feeling now."
Tony Cafarella 14:19 on 26 Feb 15
"Could not agree more Hilda. Going back to the savings plan debacle of the early 90's through to Storm, the institutions know what goes on, how to make a $ when they can, then duck for cover and blame everyone but themselves for the trail of financial destruction they leave behind. The few advisers who get in for their chop could not reap the destruction unless enabled & feted by institutions such as CBA (Colonial Mutual),NAB etc etc. It seems after so many inquiries, reviews & reforms the only way to retain sanity in this business is to accept ever increasing compliance as a fact of life, along with the reality that the next scam / rip off / will show up in the not to distant future."
Roger Stannard 13:33 on 26 Feb 15
"Thanks for the feedback Hilda and Paul - we continue to dig....with the help of consumers and a dedicated team, our determination around the issues at all levels of the industry remains resolute. "
Angus Woods 13:20 on 26 Feb 15
"Hilda you have hit the nail on the head"
Paul Zoethout 13:09 on 26 Feb 15
"You've joined the ranks of all those who don't/won't get the real issue driving most of the bad consumer experiences (like losing one's life savings) in the industry. It is NOT a few rotten individuals - it is the senior management at the banks who hire, protect, nurture and reward crooked sales processes that support crooked advisers. This register is almost as big a joke as all the calls for adviser education to fix the problem. It will solve very little and do NOTHING to prevent another Storm, CBA, NAB, Macquarie etc large scale rip-off. Dig a bit deeper, Angus: focus on the REAL causes!!"
Hilda Benjamin 12:45 on 26 Feb 15