Since 2016 I have a financial advisor collecting a monthly fee from my 900K of super. Should he be contacting me to discuss my super (and also that I am now 61) given he is getting hundreds of dollars each month for doing nothing. I am not drawing on my super yet but have just stopped working. The last time I had any contact was in October 2019 when I asked him about a letter that I got from Perpetual. He gave a one sentence answer.
Ruth in Dulwich Hill
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Hi Ruth thanks for your question.
The fact you even need to ask this question concerns me that the adviser is not meeting your expectations, and you are unaware of the service offer he has for you (or you subscribed to). This may just be a miscommunication issue. Have you received a Statement of Advice recently with an Ongoing Service Offer? Or have you signed a separate Ongoing Service Agreement? If you have these documents, read them, and see if the ongoing service aspect is meeting your needs, and the adviser is delivering on what he said he would do. If you do not have either document, contact your adviser for a copy.
Without knowing what your previous interactions with your current advisor have been. I will answer this question in some general terms. in short, I would say yes, he should have been in touch, in some way, and you should be receiving value for the fee that you are being charged.
There may simply be some extenuating circumstances as to why that advisor has not contacted you. I am not sure when your last formal review would have taken place with your advisor, but I think it is reasonable to expect at the very least, an annual review of your circumstances. I would suggest you make a contact with your advisor and ask for a review, as you are currently paying for a service.
The advice landscape has changed significantly in the last two to three years, there are many clients who have lost their adviser due to advisors exiting the industry, approximately 5000 plus advisers have left over the last 12 months. I am not sure if your advisor is one of those and has exited the industry and your account has just become an “orphan” with your fund manager, again something to check.
In summary, my suggested course of action is to touch base with your current advisor. If he does not respond within a reasonable time, contact your super fund and let them know you do not have an adviser and stop the fee, then I would suggest you seek out another advisor that is recommended in your area either via a friend, Google, or our Advisor Ratings web sites. It is simply not acceptable now if you are paying for a service to not receive that service.
There has been significant share market changes and changes to many people’s circumstances over the last 12 months, that require valuable advice from a financial planner, but there is no value in paying for a service and receiving no advice.
Ruth, I hope that assists, all the best. Anthony Roe, Financial Planner Adelaide
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