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financial advice

This tag is associated with 109 posts

5 July 2019 (AFR) – Broking bad: warnings of an advisory wipeout

[COMMENT: This is an interesting expose into the world of stoke broking, and some of the things that can go wrong. Bottom line? – Maybe don’t trust everything that everyone tells you.] (5 July 2019, AFR, p20, Liam Walsh, Reporter) ‘Questions are being raised about why one of Australia’s biggest stockbrokers did not disclose internal … Continue reading

29 March 2019 (AFR) – Consumers confused over financial advice: ASIC

[COMMENT: This is a very interesting article. When we stop and think about it, it’s no wonder that general consumers are confused about the terminology in this field. the regulators have put this wording in place without taking enough time and care to make sure that consumers understand it.] (29 March 2019, AFR, p20, James … Continue reading

9 Feb 2019 (AFR) – Banking Royal Commission: now you will get what you pay for in financial advice

(9 February 2019, AFR, p30, by Ben Smythe) ‘As highlighted in the royal commission, people paid a lot of money for what they thought was financial advice. But in fact what they were paying for were expensive financial products (in-house superannuation, managed fund funds etc) with little or no financial advice that was specific to … Continue reading

9 Feb 2019 (AFR) – Banking royal commission: what it means for you

(9 February 2019, AFR, p28, by Nicole Pedersen-McKinnon) ‘Get set for changes to how you pay your financial planner, get a mortgage and what you do with your super when you move jobs.’ ‘One of the few unresolved consumer questions about the royal commission report Kenneth Hayne delivered to the government this week is: “Who … Continue reading

30 Jan 2019 (AFR) – Adviser anxiety levels high ahead of Hayne final report

(30 January 2019, AFR, p17, by James Frost) ‘The financial advice and wealth management community is on high alert ahead of Commissioner Kenneth Hayne’s final recommendations as concerns mount that reforms could increase the cost of advice for consumers, reduce the viability of financial advice businesses and abruptly end vertical integration. The potential for the … Continue reading

21 Dec 2018 (AFR) – ASIC takes aim at conflicted brokers, bankers over equity market deals

(21 December 2018, AFR, p1, by: Jemima Whyte and Jonathan Shapiro) ‘The corporate regulator is questioning whether Australia’s liberal rules for capital raisings have created an environment that favours a select club of stockbrokers and investors, and flagged plans for tougher scrutiny of debt markets and large share sales. The Australian Securities and Investments Commission’s … Continue reading

15 Oct 2018 (AFR) – After ‘bad advice’, ASIC lets former advisers off the hook

(15 October 2018, AFR, p17, by Misa Han) ‘The corporate regulator says it will not go after rogue financial advisers who have left the industry, contrary to Commissioner Kenneth Hayne’s advice unscrupulous advisers should be publicly condemned. The corporate regulator’s financial advisers register shows all of the nine advisers named in the royal commission for … Continue reading

11 Aug 2018 (AFR) – IOOF super fund staff raided member reserves

[COMMENT: Talk about having trust in our large financial institutions. Some even lie to the regulator.] (11 August 2018, AFR, p1, by James Frost) ‘Staff at wealth manager IOOF raided a reserve fund to fix their own bungle then lied to both customers and the regulator about what had transpired, the Hayne royal commission heard … Continue reading

8 Aug 2018 (TheAge,SMH) – How lazy financial planners get money for nothing

(8 August 2018, The Age, MONEY supplement, p2, Marcus Padley) ‘Superannuation funds are in front of the Hayne royal commission into banking and financial services this week and have been asked to reveal their entire fee and cost structures for the first time. The suggestion is that retail funds controlled by big institutions have been … Continue reading

18 July 2018 (TheAge,SMH) – Dobbed in: ASIC reports rise in ‘bad apple’ financial advisers

(18 July 2018, The Age, Business, p22, Ruth WIlliams) ‘The corporate regulator says it is witnessing a spike in the number of “bad apple” financial advisers dobbed in by their former employers, a “positive development” in a sector notorious for allowing poor performers to move from firm to firm. The Australian Securities and Investments Commission’s … Continue reading

28 Apr 2018 (AFR) – The untouchables: How the dodgy financial planners kept their jobs

(28 April 2018, AFR, p16, by Joanna Mather) ‘Charging dead people fees, impersonating clients, falsifying signatures. It’s all apparently in a day’s work for unscrupulous members of the $4.6 billion financial planning industry. For the best part of the past week, the Hayne royal commission explored the misdeeds of advisers employed by the big banks and AMP. The testimony was … Continue reading

28 Apr 2018 (AFR) – Banking royal commission raises separation of product and advice

[COMMENT: Caveat emptor!! How can we find a reliable financial advisor?] (28 April 2018, AFR, p4, by Fiona Buffini) ‘The banking royal commission has questioned whether the vertical integration of banks, as product makers and advisers, can serve the interests of customers. Counsel assisting the royal commission Rowena Orr, QC, asked whether it was possible … Continue reading

26 Apr 2018 (AFR) – Bad planners simply ‘go down the road to another association’ – FPA powerless to discipline planners

[COMMENT: With the current revelations from the banking royal commission, investors should be looking wisely for a good financial planner.] (26 April 2018, AFR, p1, by Joanna Mather, Alice Uribe) ‘Incompetent or crooked financial planners can walk away from the industry’s professional associations, without any penalty, to avoid sanctions and punishment for giving poor advice … Continue reading

25 Apr 2018 (TheAge) – The questions you need to ask before you pick a financial adviser

(25 April 2018, The Age, Money supplement, p2, Christine Long) ‘A financial planner may enter your life through the recommendation of a friend or family member or an introduction via your bank. But that doesn’t mean you should simply hand your money over. As the Hayne Royal Commission is highlighting some thorough investigation is needed … Continue reading

25 Apr 2018 (TheAge) – One move that would go a long way to fixing financial advice

(25 April 2018, The Age, Money supplement, p1, John Collett) ‘There are no quick fixes to curb recurrences of the shocking revelations at the banking royal commission concerning financial advice. But there is a move you’d think would be obvious: licence planners individually.’ <snipped…> ‘… I recall the experience of a 61-year-old cancer patient. She showed me her … Continue reading

24 Apr 2018 (AFR) – Banking royal commission: The real cost of financial advice

(24 April 2018, AFR, p2, by Jennifer Hewett) ‘The guiding principles for AMP’s remediation program for clients who received dud and damaging financial advice certainly sound reassuring. They include the company’s commitment to “timeliness and transparency” as well as to restoring the client’s financial position. But don’t ever try persuading the hapless clients of AMP’s … Continue reading

24 Apr 2018 (AFR) – Customers kept in dark about poor advice for years and years – Banks, AMP sitting on powder keg of compensation claims

(24 April 2018, AFR, p28, by Karen Maley) ‘The country’s major financial firms are at risk of being deluged by compensation claims, as their customers realise that the shoddy and conflicted financial advice that has been provided to them could entitle them to substantial financial remediation. In testimony before the Hayne royal commission on Monday, ANZ … Continue reading

24 Apr 2018 (AFR) – ANZ’s wealth sale driven by compliance breaches

(24 April 2018, AFR, p6, by James Frost) ‘ANZ’s decision to get out of the wealth business was driven by widespread compliance failures by its financial planners that the bank had identified as high risk as far back as 2013, the Hayne royal commission has heard. A business risk and compliance committee identified in late … Continue reading

24 Apr 2018 (AFR) – AMP adviser’s clients lost a quarter of their super. They don’t know it yet

(24 April 2018, AFR, p6, by Joanna Mather) ‘A husband and wife who rolled their superannuation into an AMP-owned product on the basis of dodgy advice lost a quarter of their money in fees – only they don’t know it yet. AMP has yet to inform the mystery couple of their loss even though the … Continue reading

20 Apr 2018 (AFR) – CBA charging dead customers for advice, banking royal commission hears

(20 April 2018, AFR, p9, by James Frost) ‘A group of planners from Count Financial were charging customers for advice fees after they had died with one planner charging a dead customer almost $1000 a year for advice for more than a decade. The problems at Commonwealth Bank subsidiary Count Financial have been revealed at … Continue reading

20 Apr 2018 (AFR) – Nurse felt ‘humiliated’, ‘stupid’ after taking Westpac advice

(20 April 2018, AFR, p7, by Joanna Mather) ‘A nurse who sold her home based on bad advice from Westpac says she felt so “humiliated” and “stupid” she kept the ordeal secret from her children until she was called to appear before the banking royal commission. In 2015, Jacqueline…’ <snipped…> ‘ “I will never, ever … Continue reading

17 Apr 2018 (AFR) – Regulators turned a blind eye to ‘inherent conflict’ for two decades

[COMMENT: This news article talks about the now infamous ‘fee for no service’ that was recently brought to light by the banking royal commission, but also includes a good history of the banks’ purchases of wealth management businesses over recent years.] (17 April 2018, AFR, p26, by Karen Maley) ‘In the late 1990s, it was … Continue reading

14 Apr 2018 (AFR) – CBA cops ASIC penalty for ‘fee for no advice’ scandal

(14 April 2018, AFR, p22, by James Frost) ‘Commonwealth Bank will cough up $3 million and submit to regular and independent third-party reviews of its financial planning arm as part of an enforceable undertaking reached with the Australian Securities and Investments Commission. The agreement relates to 31,500 customers of CBA subsidiaries Commonwealth Bank Financial Planning … Continue reading

10 Apr 2017 (AFR) – Former NAB director to chair new financial sector body to oversee industry

[COMMENT: Now, according to this news article below, we have a powerful new body to “professionalise” the scandal-ridden financial advice sector. It might be possible to “clean up” the sector so that more honest “advice” can be given; but I seriously doubt if the industry will ever be able to avoid harsh criticisms and dismal … Continue reading

28 June 2016 (AFR) – Former financial planner takes Westpac to court for bad advice

[COMMENT: Investing in financial products can be a mine field. It pays to study the detail and the fine print. It certainly pays to understand the product in which you might invest.] (28 June 2016, AFR, p3, by Misa Han) ‘A former Westpac financial planner is suing the bank, saying he has lost more than $800,000 and is at the risk of losing family … Continue reading

18 May 2016 (TheAge) – HSBC forced to repay customers for poor advice

(18 May 2916, The Age, BusinessDay, p19, James Eyers, Senior Reporter,  View more articles from James Eyers) ‘HSBC Bank Australia is reviewing the files of 464 retail customers who bought structured products from the bank over a four-year period to determine if they should be compensated for poor advice. The Australian Securities and Investments Commission … Continue reading

6 Apr 2016 (AFR) – SMSF licence uptake flags; Most accountants shun SMSF licence

(6 April 2016, AFR, p3, by Kate Cowling) ‘Fewer than 400 accountants in Australia will be licensed to provide self-managed super fund advice from July, which is just over 1 per cent the number who were advising in this area a couple of years ago.  From July 1, accountants will need either a limited licence from … Continue reading

30 Mar 2016 (TheAge, MONEY) – Unwary in for a nasty surprise – Truth about long-term investment and black swans

(30 March 2016, The Age, MONEY supplement, p6, Marcus Padley,  View more articles from Marcus Padley) ‘The expression “Black Swan event”…’ <snipped…> ‘…improve your chances, but to think that you can believe a long-term promise or make a long term judgment about a stock today, on the basis of the evidence available now, is irrational. … Continue reading

20 Feb 2016 (AFR) – “Everything seems backwards”: reality bites investors

[COMMENT: Now here is an interesting admission. So there are some advisors out there whose clients might have been better off if they had done the opposite of the recommendations?] (20 February 2016, AFR, p23, by Patrick Commins) ‘When an investment bank’s top equity strategist admits to his clients that “doing the opposite of what … Continue reading

18 Dec 2015 (TheAge,SMH) – It was more than just a few rogue planners at CBA, review finds

[COMMENT: What does this news story actually mean? That some financial advisors cannot be trusted? How many are in this category? Surely not a majority?] (18 December 2015, The Age, BusinessDay, p28, Adele Ferguson, Business columnist,  View more articles from Adele Ferguson) ‘After wading through more than 68 pages of a confusing and heavily jargoned … Continue reading

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