My 2 Cents on the Royal Commission Into Financial Services

I am proud to be a financial advisor however the Royal Commission into the sector is highlighting a number of issues including the conflict that banks and investment managers have when they create a distribution network within their businesses aimed at generating profit.

Many planners I know who work in the banking system (aligned to the big banks and investment managers) are ethical but also have their hands tied when it comes to selection of product for their clients which puts the focus on ‘sales’.

Personally I have never worked in the banking system and have only worked with non-bank or non-institution aligned businesses. We still have a list of product but our research team is always open to review anything in market that may have benefit to clients.

Don’t tarnish the whole system with the same brush as you read the horrible stories out there. There is a massive difference between ‘advice’ and ‘sales’ in the financial services system and hopefully the outcome of the royal commission results in the whole industry being ‘advice’ and ‘client’ focused rather than ‘sales’ focused.

As Financial Advisers we work in a very privileged space with people in often a very vulnerable space as the money system we have all been born into is not always easy to navigate.

If you are engaging in the advice process, ask plenty of questions, interview more than one adviser, and get a clear guide on fee structure and start your journey to being free around your money.

After 17 years in the industry I have so many positive stories and outcomes that the right advice can change people’s lives for the better just as the Royal Commission is showing the wrong advice can do just the opposite!

 

Where to From Here?

My view is that we will likely see the big banks take a review on provision of financial advice and hopefully this will change the landscape to ensure more advisers are client strategy focused and less about the sales approach.

If you have any questions about our business or approach as always I am only a phone call or email away.

 

Scott Malcolm has been awarded the internationally recognised Certified Financial Planner designation from the Financial Planning Association of Australia and is Director of Money Mechanics.  Money Mechanics is a fee for service financial advice firm who partner with clients in Melbourne, Canberra and Sydney to achieve their life and wealth outcomes. We are authorised to provide financial advice through PATRON Financial Advice AFSL 307379.

The information provided on this article is of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs.  Before acting on this information you should consider its appropriateness having regard to your own objectives, financial situation and needs.