Simple independent superannuation information
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4 comments

  1. Matthew Ross

    As a start, you could refer to Brett Walker’s independent advice website: http://www.independent-advice.com.au – this website features 15 genuinely independent advisers around Australia that satisfy ASIC’s narrow definition of independence. We find it hard to believe that there are only 15 of us on record; we find it confusing why consumers would accept advice that is tainted with conflicts of interest.

  2. financial adviser

    Investment Advisers are held to a fiduciary standard. A Financial Adviser held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a fiduciary, they are required to act with undivided loyalty to clients. This includes disclosure of how to be compensated and any corresponding conflicts of interest. This is a sure fire way to tell if they are independent. Good Post Trish!

  3. Alison Wearn

    Im a Chartered Accountant and have recently looked into extending my practice into the financial planning field.
    Im horrified to find that even if I undertake all the study in the world I will still have to join a group that holds a license in order to give advice. Under this I would then have to push my clients towards whatever that group was pushing in terms of investments even though Im aware and know that in some cases cash or property is a smarter cheaper and certainly tax effective option.

    I have made extensive phone calls to both the FPA and the ICAA and they agree that yes the industry is set up this way that really no one can get away with getting any financial advice without being charged on average $3000- $4000. This advice an NEVER be independent as you are always linked to someone with a license.

    I recently had clients with just 200,000 that a financial planner was charging $6000 set up and $4000 ongoing ( asset managment and financial planning) when I asked him why he didnt consider cash as these people are under the SATO thresehold anyway and could earn interest on this amount in their own names … he had no answer … Im disgusted but pursueing the Grad Diploma and certaily hounding the ICAA for answers or at the very least a license holder who will allow me to charge a smaller fee an SOA than 2000.00.

    This is something that Im very passionate about and have negotiated with a Sydney based stockbroking firm who will run the asset manangment reports for as little as $500 a year. At present Im advising clients that they, as trustees, are better to take responsibility themselves for investment decisions with a little help from an authourised rep from this firm. Combined with my tax advice we can easily lead them to make informed tax effective decisions for thier money which can get them a fully audited SMSF with broker advice for as little as $1500.00 per year.

    Its ridiculous that a person with my knowledge cannot advise and yet a pleb at any bank can do a 3 month course and call themsleves a financial planner … these people know nothing about the complexities of the taxation treatment of pensions etc.. nor how to work these things out so people can still access the part govt pension.

    1. rob nel

      Hi Alison,
      Thanks for making some valid points. I agree with much of your statement. I would like to start doing my own SMSF tax complianc work with occasional advice from professionals. I am retired with a numerate backgorund and so would hopefully pick up the basics to do so fairly quickly. However, I would need the occasioanl skilled advice and of course auditing of the return. Any comments you can make would be great.

      Regards,

      Rob

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