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'Expensive fortune telling' the fault of the banks

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Australian Broker | 27 Jan 2012, 04:30 AM Agree 0
Mortgage brokers are outperforming the "expensive fortune telling" of financial advisers, but blame the government and big banks, not the planners
  • Phil | 27 Jan 2012, 12:13 PM Agree 0
    Its over regulation that effects any industry and ultimately the consumer. Planners spend so much time on paperwork and dealerships on legal advice to avoid litigation that the natural result is being motivated by income. However many planners I work with, qualify the client before appointment and the initial first appointment and fact find is free. I don't know too many planners that advised on margin scheme products. The whole reason ASIC are looking into the industry. It was the Bank that lent clients the money against o/o property. It was also the Bank that sold up all the shares at a loss. It was the Bank that failed to disclose that they in fact owned these shares not the client. The Bank will still lend you 100 percent on what you put in and in fine print "however we will sell you up as we see fit as we own the shares". Ultimately endorsed by ASIC. When is this pathetic ASIC going to go for someone other than the little guy? All they have done in both the financial planning and mortgage broking industry ( whats left!!) is increase the domination of Banks.
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