With his fee for service model in place, Morgan strongly disagrees that his refund offer devalues his work as a broker.
“If anything, I’d say the opposite if we are talking about a strict fee for service (no commission) arrangement. I pay my doctor, my lawyer and my accountant a fee for service. I can’t think of any profession that isn’t remunerated on a fee for service basis. It is part of why the FOFA reforms for financial planners have been so broadly accepted at the highest levels. They finally have the chance to become a profession instead of being seen as ‘product pushers’.”
In fact, he says, not charging a fee likely devalues what brokers do as the industry tries to perpetuate the ‘myth of a free service’.
“It is demonstrably conflicted and not in the client’s best interests. Clearly the government and ASIC agree - hence s160B of the NCCP Act.”
That said, Morgan believes there will always be a place for the traditional commission-based broker business model.