It was a week that saw some of our major financial institutions brandished with the wooden spoon and forced to apologise to their metaphoric mother.
Unfortunately, sentiment couldn’t fall any further in financial planning with all major consumer publications around Australia leading with outrageous stories and case studies of how financial planners have left their customers destitute.
With the prospect of a Royal Commission still lingering, it is unlikely that things will change any time soon. It will be a slow and arduous process for the financial advice industry to pull itself together, or for that matter, to change consumer sentiment. This constant negativity engulfing the profession leads to several adverse outcomes to the detriment of John and Jane Public:
- Able and willing new planners not entering the profession for fear of being branded with this negativity “Oh, you’re one of them”
- Capable and competent financial planners throwing in the towel and drained by the rogues and mismanagement causing such upheaval to their personal brand.
- Customers not seeking out a financial planner when it’s in their best interests.
However, in the midst of all this, there is constant talk of budget changes to Super – Chris has pointedly penned his thoughts on why this is not the time to be letting this crisis in confidence stop you from seeing a financial adviser.
Recently, I was asked to write a more detailed piece on what other motivations we had for starting Adviser Ratings. I have included this article in this newsletter for anybody who may be interested. The quote from Warren Buffett at the top of the newsletter should signal to investors that constant awareness and questioning of your investment strategy should continue through the bull markets - don't be in a situation like 2008 and find out that you cannot weather a significant storm.
Regarding storms, what we witnessed with the NSW storms I think analogously spoke for the sentiment that ruffled the advice industry this week.
Enjoy your weekends.