Financial advice: Only 123 independent financial advisers in Australia

Note: This article is updated regularly when new financial advisers join the independence club (latest update November 2018). A financial adviser does not have to be a member of the IFAAA to join the SuperGuide list, provided they can declare that they satisfy the requirements of being an independent adviser (we now have 3 categories). Anyone seeking an independent adviser needs to conduct their own research on whether an adviser is truly independent – this article will help you with this research.

One of the promising developments from the financial advice reforms is the proposal to establish a public register of financial advisers, including employee advisers, which consumers can access to check the adviser qualifications and whether the adviser is licensed. It appears the register will not disclose whether a financial adviser is ‘independent’.

Until the government or the financial advising industry creates a comprehensive list of financial advisers that consumers/investors can use to verify the professionalism of an adviser, his or her qualifications, the ownership of the advising firm and an adviser’s independence, I anticipate that SuperGuide will continue to publish this unique list of 123 independent advisers. We hope that many more independent advisers will come forward, or choose to move into the ‘independent’ category.

Does Australia really only have 123 independent advisers?

Before you ask the obvious question, let me say, we have asked the same question: How do we know that the 123 advisers in the SuperGuide list are the only independent financial advisers advisers in Australia?

Well, we don’t! We know anecdotally that there are plenty more independent advisers working away in adviserland. At least we’re hoping that in a country of 25 million people that there are many more independent financial advisers working away for their clients too busy to have time to register for this very exclusive list. Let’s hope SuperGuide’s updated publication of the ‘group of 123’ inspires other independent advisers to make themselves known (if they exist), or inspires others to become truly independent.

Open invitation to independent advisers

Background: Way back in February 2010, we published a list of 14 independent advisers which triggered much controversy and angst from the financial services industry, and from SuperGuide readers. In April 2011, SuperGuide was at it again, and the number of truly independent advisers in Australia had halved – to 7! In February 2012, for the third year in a row, we published an updated list of 9 truly independent advisers.

In June 2012, we again published the updated list of independent advisers but we split the types of independent advisers into 3 categories: more on those categories later in the article. As at November 2018, we now have 123 independent financial advisers on the SuperGuide list.

Since June 2012, we have slightly changed the process involved in compiling the SuperGuide list of independent advisers because we essentially have two definitions of independence:

• The Corporations Act 2001 definition of ‘independence’ which allows advisers to charge asset-based fees
• The IFAAA definition of independence, which excludes those advisers who charge asset-based fees.

We have also published an open invitation to all independent advisers to contact SuperGuide. We will add the names of the independent advisers to the SuperGuide list, subject to the adviser declaring they satisfy each limb of the independence requirements.

Note: The adviser will not need to be a member of the IFAAA to join the SuperGuide list (see end of article for link to invitation and for form to sign). The IFAAA has a stricter definition for independence than the independence definition contained in the Corporations Act. We have a second category for those advisers who satisfy the stricter IFAAA definition but choose not to be a member of IFAAA. We have also created a third category for those advisers who satisfy the Corporations Act definition of independence, which means they may also charge asset-based fees.

What does an IFAAA independent adviser look like?

According to Daniel Brammall, President of the Independent Financial Advisers Association of Australia Limited (IFAAA), the IFAAA receives quite a few calls from financial advisers seeking to be members of the association, and Brammall sends out plenty of application forms.

“In spite of all the conversations I have with advisers interested in joining, so far these members [53 advisers in the updated list below] are the only ones who have successfully passed the IFAAA’s Gold Standard of Independence test,” says Brammall.

According to Brammall, the three requirements for the IFAAA’s Gold Standard of Independence are:

1. You can’t be affiliated with a bank, insurance or investment company (that is, a product manufacturer).
2. You can’t receive commissions of any sort – including insurance commissions – unless you refund them in full to the client.
3. You can’t charge asset-based fees (that is, a percentage of client assets under advice or under management).”

Independence remains an issue

Although the ban on commissions for future retail investment products (including managed investments, superannuation and margin loans) is history making (effective since July 2013), the question of independence (or lack of) remains an issue beyond July 2013.

In the past I have made the comment that I have found the debate surrounding commissions and ownership and independence of financial advice rather depressing because the Government and financial planning industry and commentators were trying to change the industry from the bottom – dragging the worst advisers (in terms of independence) to a level that was a little bit better than ‘worst’. I stated that such an approach was destined to countless setbacks (and ultimately failure) because the broader financial planning industry as it is historically structured is a product distribution model rather than a financial advisory model.

Real change to be driven by advising industry

Even so, real change will only occur when financial advisers drive the change rather than having the Government and regulator drag reluctant advisers kicking and screaming into a new professional business model. Initially, the leaders of the financial advising industry read the signs and were making the right noises (‘higher quality advice’ and ‘more professional industry’), although many backpedalled on significant reforms, in particular, the requirement to ensure a client periodically (every 2 years) agrees to remain a client (the opt-in rule) of the adviser. The original reform announcement referred to an opt-in after every 12 months, and then extended to every 2 years. Under the former ALP government, the final reform version for the opt-in requirement meant that some advisers won’t even have to participate in this compliance requirement, provided they are bound by a code of conduct approved by ASIC. And now we have a Liberal government that tried to remove the opt-in requirement completely, but was stymied by the Palmer United Party.

This irrational opposition from the broader financial services industry is disappointing for consumers and for younger people considering financial advising as a career. In my view, we need to reward the advisers who are operating in the best interests of clients right now – structurally, operationally and ethically.

The relatively new organisation – IFAAA – can differentiate the truly independent licensed advisers from the thousands of advisers who accept commissions and/or are employed or incentivised by the product distributors (typically the major financial organisations).

Note: Although financial reforms took effect from July 2013, existing commission arrangement and incentive schemes will continue to operate indefinitely, and independence, and conflicted advice, will be a constant struggle for the financial advising industry.

What does ‘independent adviser’ mean?

So, what do you need to possess in the way of skills and independence to make this exclusive list?

I interviewed Matthew Ross at the time we published the original list of 14 independent advisers (in February 2010), and his comments remain relevant. According to Matthew Ross, who is a member of the IFAAA, the list of independent advisers “satisfy the Corporation Act’s definition of independent (see s.923A) which is basically no commissions, no charging fees based on volume of product sold or advised on, and no affiliation with any product manufacturer.”

Ross explained that 80% of all authorised representatives are aligned with a product manufacturer, which precludes them from describing themselves as independent. He said: “Of the remaining 20%, a large slice of them pocket commissions (on insurance and/or investments) or charge their fees as a percentage of your assets, which is commissions by another name.”

Ross argued that the big push by planners to drop commissions but to charge fees as a percentage of assets under management is simply commissions by another name. Ross said that the asset fees are usually collected through a platform, which is not considered a ‘financial product’ under the legislation, and it means the financial adviser can then describe themselves as independent.

“The issue isn’t the word ‘commission’; it’s the concept of an incentive and no matter which way you look at it, when you are paid a % of anything, there is an incentive. Incentives result in zero independence,” said Ross.

Note: Effective since 1 July 2013, every financial adviser is subject to a statutory fiduciary duty to act in the best interests of a retail client. What this means is that a financial adviser is required to place the best interests of a client ahead of their own when providing personal advice to retail clients.

IFAAA – point of difference

The IFAAA promotes itself as the ‘gold standard’ of independence of financial advisers. Quoting directly from background IFAAA information:

Existing industry associations do not provide genuine independence. They represent the eighty-five per cent of financial planners associated with product manufacturers who receive commissions. According to the ASIC the typical financial planner acts as a “sales force for financial product manufacturers” and that advisers are “a product pipeline”. This is who the current industry associations are representing. Not one of the main four planner associations represents the interests of truly independent advisers whose interests are aligned with their clients.

According to the association’s background material, the IFAAA aims to solve the definition of independence and promote the value of independent advice to the consumers, to train and develop independent financial advisers, and to represent the interests of its members to government.

Membership of IFAAA

For a financial adviser to become a member of the IFAAA they must agree to the following:

• I declare that I am genuinely independent and acknowledge the restrictions of the use of the term ‘independent’ under s 923A Corporations Act (2001).
• I avoid all real and perceived conflicts between my interests and my client’s interests.
• I do not receive commissions for my client purchasing a financial product.
• I do not receive payment or inducements to recommend financial products to clients.
• I do not have in place any fee structure that means I will not be paid unless my client purchases a financial product.
• I declare that I have an interest in promoting and encouraging the professional development, independence and concerns of financial advisors.
• I acknowledge that membership is contingent upon payment of an annual membership fee as determined by the Board from time to time.

Financial advisers are not the only experts who can provide independent advice. Accountants, lawyers and other independent professionals can become ‘associates’ of the IFAAA.

Group of 123 (53 + 48 + 22) – the list!

SuperGuide publishes, and intends to regularly update, a list of three categories of independent advisers:

• those advisers (and AFSL holders) who are members of the IFAAA
• those advisers (and AFSL holders) who satisfy the IFAAA independence requirements but are not members of the IFAAA
• those advisers (and AFSL holders) who satisfy the independence requirements under the Corporations Act but may charge asset-based fees, which means they don’t satisfy the additional IFAAA requirement of only charging fees based on hourly rates or retainers. 

IFAAA members – independent advisers

According to the IFAAA, as at November 2018, there are 53 independent financial advisers in Australia who are also members of the IFAAA (satisfy the independence requirements under section 923A of the Corporations Act 2001, plus only charge hourly rates or retainers for services). The names of these independent advisers are:

ACT
Daniel Brammall	Brocktons Independent Advisory
Naomi Horobin	Clover Financial
Susannah Kulincevic	Brocktons Independent Advisory
Phil Thompson	Rise Financial
NSW
Richard Barber	Liquidity Independent Advisers
Stuart Barber	Liquidity Independent Advisers
Phil Davies	Liquidity Independent Advisers
Alex Electra Frost	Electra Frost Accounting
Fergus Hardingham	FM Financial Solutions
David Harper	Naked Wealth
Philip Harvey	Construct Wealth
Vince Lam	Plutus Financial Guidance
Deborah Lin	Liquidity Independent Advisers
Daniel McGregor	Wealth Train
Michael Morrison	M Financial Planning
Jo-Anne Nelson	Arc Financial Solutions
Stephanie O’Connor	Custom Accounting
Howard Pitts	Arc Financial Solutions
Michael Radalj	Your Private Advisers
Bill Raffle	Bennelong Private Wealth
Peter Surtenich	Suetonius Wealth Management
Katie Whiffen	The Retirement Blueprint
QLD
Justin Brand	Brand Financial
Aaron Crosthwaite	McMasters’ Financial QLD
Keith Henderson	Malibu Wealth Advisory
Philip Layton	Independent Wealth Management
Michael McNee	Darling Downs Independent
Todd Meynink	Asset Science
Guy Rasmussen	Whole Wealth
Neil Salkow	Roskow Independent Advisory
SA
Cameron Foster	Horizon Advisory
Jacie Taylor	Periapt Advisory
TAS
Jane Clark	Jane Clark Financial Management
Anton Diedericks	WellAdvanced Financial Advisers
Simon Duigan	Core Independent Financial Advice
VIC
Dominic Alafaci	Collins House Private Wealth
Trent Alexander	Financial Planning Expert
Ashley Arandez	Diverse Advisers
Adriano Donato	Roskow Independent Advisory
Sean Dwyer	McMasters’ Financial
Rick Horvat	Horvat Financial Advisors
Brook Logan	Logan Financial Advisers
Dennis Maddern	Maddern Financial Advisers
Matthew Ross	Roskow Independent Advisory
Amir Salehi	Planning Wealth Independent Advisory
Jason Smith	Think Independent
James Stephan	Stephan Independent Advisory
Joe Stephan	Stephan Independent Advisory
Chris Thoms	Super Focus
Berivan Yilmaz	McMasters’ Financial
WA
James Harper	Oak Advisory
Peter Humble	Rise Wealth Group
Christopher Young	CY Financial Advice

Independent advisers who satisfy IFAAA membership rules, but are not members of IFAAA

As at November 2018, we have 48 advisers who have requested to be on our list of independent advisers, and who satisfy IFAAA member rules, but who are not members of the IFAAA (second category of independent adviser).

The advisers listed below have declared that they satisfy the three limbs of independence required under the section 923A of the Corporations Act 2001, and only charge hourly rates or retainers of services:

NSW
Gavin Beecroft	Quantum Financial
Christopher Dorian Browne	F.D.Browne & Co
Harry Buckeridge	Providence Wealth Advisory
James Cruz	Evolution Financial Planning
Ben Liddicoat	BBK Financial Planning
Bill Mackay	Quantum Financial
Claire Mackay	Quantum Financial
Tim Mackay	Quantum Financial
Michael Ogg	Providence Wealth Advisory
Grant Patterson	Providence Wealth Advisory
Adrian Pinkewich	Now Accounting
William Porter	Providence Wealth Advisory
Carlo Queddeng	Providence Wealth Advisory
James Smith	Providence Wealth Advisory
Kevin Smith	The Professional Super Advisers
QLD
Crystal Bobir	Tupicoffs
Rocco Costa	Tupicoffs
Joanne Dale	Tupicoffs
Caleb Dozzi	dozzi Financial Advice
Ellie Fordham	dozzi Financial Advice
Jayne Graving	Arch Financial Planners
Simon Hepple	Tupicoffs
Glenn Hilber	Precision Wealth Management
Lachlan Kendall	Tupicoffs
Neil Kendall	Tupicoffs
Peter Lee	Roskow Independent Advisory
Ross McConachie	Tupicoffs
Mark Milner	Tupicoffs
Mark O’Flynn	Tupicoffs
Tony Sandercock	wetalkmoney
Cynthia Sercombe	Tupicoffs
Samuel Turrisi	Roskow Independent Advisory
SA
Scott Dawson	Wotherspoon Wealth
Samantha Harrison	Wotherspoon Wealth
Oliver Temme	Wotherspoon Wealth
John Wotherspoon	Wotherspoon Wealth
Simon Wotherspoon	Wotherspoon Wealth
VIC
Tom Barlow	Roskow Independent Advisory
Stephen Farrell	Guided Wealth
Mathew Horvat	Horvat Financial Advisors
Rudolf Horvat	Horvat Financial Advisors
Corin Jacka	Priority1 Wealth Management Group
Peter Morrison-Dowd	Aspect FP
Stephen Murphy	Advice Services Australia
Matthew Perry	Lilliputian Financial Services
Graham Stewart	Roskow Independent Advisory
Kirsten Townsend	Roskow Independent Advisory
WA
Dennis Barton	Andep Investment Consultancy

Independent advisers who are not members of IFAAA, and may charge asset-based fees

As at November 2018, we have 22 advisers who have requested to be on our list of independent advisers, and who are not members of the IFAAA, and who fall into the third category of independent adviser, that is, may charge asset-based fees, and other advisers operating under the same AFSL may charge asset-based fees.

We suggest you check with the adviser directly regarding asset-based fees.

The advisers listed below have declared that they satisfy the three limbs of independence required under the section 923A of the Corporations Act 2001 (refer earlier in the article):

NSW
Nigel Baker	Arch Capital
Ben Smythe	Minchin Moore
Jack Tidswell	Exceptional Financial Planning
QLD
David Lane	Pitcher Partners Wealth Management
Jeff Lemin	Aspire Financial Consulting
Alex Lukashenok	Aspire Financial Consulting
Richard Meyers	Pitcher Partners Wealth Management
Ben Travers	Pitcher Partners Wealth Management
VIC
Sue Dahn	Pitcher Partners Investment Services
Marcus Damen	Pitcher Partners Investment Services
Kellie Davidson	Pitcher Partners Investment Services
Matthew Donat	Koda Capital
David Gemmell	50Plus Wealth
Andrew Gillon	Pitcher Partners Investment Services
Michelle Heffernan	Pitcher Partners Investment Services
Victoria Lindores	Pitcher Partners Investment Services
Brendan Peacock	Pitcher Partners Investment Services
Chris Read	Pitcher Partners Investment Services
Adam Stanley	Pitcher Partners Investment Services
George van Deventer	Pitcher Partners Investment Services
Farren Williams	Koda Capital
WA
Scott Stanley	Richmond Private Wealth

If you believe that your name should be on one of the lists above, then why not contact SuperGuide? A starting point is to check out our open invitation, Still wanted: All independent financial advisers in Australia.