Over the last month we have seen plenty of media attention surrounding the Royal Commission’s investigation into Banking and Financial Services.
We felt it would be helpful to you for us to provide you with our preliminary thoughts.
Firstly, we strongly commend the work of the Royal Commission and how they have highlighted many instances whereby the poor culture of large institutional financial services businesses has led them to prioritise profits over consumer outcomes.
This has been demonstrated by:
This behaviour has only served to undermine confidence in the Financial Advice industry, particularly when it has come from some of our largest and most well-known Financial institutions.
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One of the reasons we have elected to license our business under a licensee such as Fortnum Private Wealth is to be part of a business that:
Most notably, we foresee a greater separation in Financial institutions having the ability to both own investment products (i.e. such as managed funds) and provide advice related to these products (or ownership of advice businesses).
This change will see more of the industry and our peers moving to a model that we operate under today.
The separation of advice and product.
In addition, client’s will be more diligent in selecting their Financial Adviser, and seek out advisers who uphold the following standards:
Conflicts – ensuring any potential conflict or issue that may arise to become a conflict is thoroughly disclosed to you.
Fees – providing complete transparency on our service proposition and fees you are charged for those services.