Quote:
Originally Posted by Gobsgraham
I don't know if I should start a new thread or just jump on this one since the original question is pretty much answered.
Is there such thing as an unbiased financial planner? I ask because I have not been happy with my FP and feel that everything they tell me is based on their commissions rather than what is best for my money.
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I think there are some very ethical planners, like Slava for example.
I think some planners will charge flat fees, instead of commissions? I think in many cases, there is a real conflict of interest, or potential for conflicts.
I think there will soon be a reckoning in this industry. I can't think of another industry where you can't tell how much the services are costing you, and how much your agent is making? IIRC, Australia was trying to introduce reforms to force financial planners to disclose more fully how they are compensated.
http://www.bankers.asn.au/Default.aspx?ArticleID=903
The FSR is intended to promote investor protection through improved conduct and disclosure requirements. The objective is to provide investors with confidence that those financial institutions that provide financial services and products are regulated and have appropriate training, competence, skill and integrity.
Disclosure requirements
In the main there are four key disclosure documents that financial services providers are generally required to issue to retail clients under FSR. These are:
- a financial services guide (FSG) which sets out the types of products and services the institution provides and the relationships it has with its representatives;
- a statement of advice (SoA) which is a record of personal advice provided to a customer. This document details the advice given, any commissions that are payable or receivable by the adviser or the adviser’s employers, and any other interests that might be capable of influencing the advice given;
- a product disclosure statement (PDS) that describes the main features of the financial product, any significant benefits or risks in holding the product, costs of the product, any investment return from the product, any significant taxation implications and any relevant commission arrangements that may affect an investor's return.
- a periodical statement of account.