Mortgage brokers are outperforming the "expensive fortune telling" of financial advisers, but blame the government and big banks, not the planners.
That's the message from WhistleBlower on the Australian BrokerNews forums, where brokers and planners debated an ASIC review slamming the quality of financial advice.
The quality of advice from Mortgage Brokers far outstrips that of expensive fortune telling with a 'over the horizon' predictions --- and, you can't even blame Financial Planners, it was stupid Government 17 years ago that led to re-painting the veneer of that industry... and don't forget, we are discussing banks here, the artful dodgers.... they OWN the vast majority of Financial Planning infrastructure, brands, pipeline, compliance, maintenance.... what's the bet ASIC attempts to slight the little guy who's busting his guts and ignore the Mammoths in the room, banks!
Terry also took aim at the banks, from his own experience as a bank employee.
I worked for one of those banks. the focus is purely on sell, sell, sell. not on the quality of the advice or the clients' needs. it profot before customer. I couldn't work under that ethos.
Financial planner John lamented the outlook on his industry, and said he was disheartened by ASIC's focus on forward projections.
This is very disheartening. I have been in this industry for over 25 years as a financial planner (but never as an insurance salesman) and I work long hours for my clients running my own business. My income at best is modest. I do not charge excessive fees but I spend many hours understanding the needs and wants of my clients to make sure what I tell people is both reasonable and as realistic.
But I am dismayed at what I suspect to be the subjective content that appears to be required by ASIC as to what should and should not be in a Statement of Advice. I am particularly dismayed as to the apparent importance ASIC appears to place on the use of projections that a financial planner should place on them as a reliable determinant in forecasting a client’s future retirement income. Perhaps someone might like to enlighten me as how much reliance is or should be placed on projections. Whilst I use those projections authorized by my licensee I am only too well aware of the downfalls that relying on projections can result in. Using historical or accepted industry expected returns based on asset allocations is at best misleading. There is not enough space here to discuss the shortcomings of product providers including information published and marketed by institutions including the likes of industry super funds which appear to be a protected species.
What do you think? Have your say on the ASIC secret shop that tarred planners as providing inadequate advice.