Avoid robber planners

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has surprised both friends and foe of the financial industry.

Friends of the financial industry were surprised that the big banks and AMP were as fraudulent as whistle blowers had been saying they were.

Foes of the financial industry were not surprised that the big banks and AMP were fraudulent, but they were surprised that the Royal Commission managed to get them to confess their wrongdoings.

What has also been confirmed is that ASIC, the regulator of the financial industry, has been ineffective, to put it politely.

For consumers, the take-away is: they need to satisfy themselves that their financial planner is not connected in any way through commissions, incentives or payroll with the providers of financial products.

Are you retired and addicted to term deposits? is a new booklet produced by CPSA, which lists the questions you need to ask a financial planner before engaging them:

1) Do you have any direct or indirect links with a company that provides investment products, such as managed funds or other products?

2) What are your financial advice qualifications?

3) Do you think that a full Statement of Advice is warranted or will Specific Advice be more appropriate?

4) Can you take me through all the fees and charges that will apply if I go ahead?

Are you retired and addicted to term deposits? also gives pointers about what kind of answers you should be getting.