Members of the LICG have prepared submissions and articles based on the information available to them at the time of publication. As always, in the interests of transparency and integrity, we ask that any inaccuracies be bought to our attention. Not all documents have been published under the name of LICG.
Mr Hayne accused the major banks of greed.
“In almost every case, the conduct in issue was driven by the relevant entity’s pursuit of profit” [nec]
The Banks were found to be responsible for the majority of WRONGDOING against consumers. Yet it will be the non-bank Financial Planners and Mortgage Brokers who will pay with their livelihoods for the Banks’ bad behaviour. Meanwhile, the banks have been left “unscathed” and the Government will wipe out the non-bank advisers who are the only competition and alternative to the Banks for consumers.
Would you believe that Bank shares went up today, because investors know that the banks will take the Advisers’ market share. The Government is about to impose legislation that will force Advisers out of business and reduce competition in favour of the Banks, thus rewarding the Banks’ misconduct and greed!
Top 8 Royal Commission recommendations for Financial Advisers:
- Life insurance commissions recommended to be reduced to zero
- Clients will have to opt-in each and every year to agree to ongoing fee arrangements and be provided with an annual FDS and record of services provided
- Measures already implemented to “improve the quality of advice” will be reviewed again, the review must be completed no later than December 2022
- Advisers are considered to be conflicted so long as they stand to benefit financially from clients implementing their advice
- Grandfathering of trail commissions will be cancelled ASAP
- Removing other exemptions for Conflicted Remuneration, such as for General Insurance products, will also be considered
- AFSLs will be required to further increase Adviser supervision and make extensive enquiries into any misconduct, inform the clients and remediate them
- A new, single disciplinary body for financial advisers, is recommended that will allow clients to report Advisers (Dob in an Adviser – what provisions for advisers to defend themselves from clients only looking for an unjustified pay-out?)
Each time the Government takes steps to destroy our businesses, the financial planning industry does absolutely nothing. Yes, the Banks and other large institutions should be held to account for what they have systematically done, but what always happens is the non-bank Advisers will be the ones to be wiped out by the Banks’ behaviour. The end result is worse outcomes for consumers, who in the end will always end up paying for the Banks’ misconduct; and we will be powerless to stop it, unless we do something NOW!
ENOUGH IS ENOUGH
Don’t get bowled-over and destroyed by the banks, join the advocacy team who’s mandate is to relentlessly lobby the policy-makers with the truth and the facts about how to have a sustainable Financial Services industry for the long term support and best outcomes of consumers.