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Discussion in 'Introductions' started by GMG, 22nd Oct, 2007.

  1. GMG

    GMG Member

    Joined:
    24th Sep, 2006
    Posts:
    16
    Location:
    Brisbane, QLD
    Hi everyone,
    GMG here, Margo from ss forum, however I registered here a while ago, but never posted here until now.
    Thank you for the great info from this forum.
    I just typed a long intro, and Telstra decided to drop out, so I lost it all.
    Here it goes again.
    I am mainly into real estate investing.
    I've lived in Melbourne, and predominantly Sydney in the past.
    I moved to SEQ 5 years ago and love the life-style.

    Last year I went with the hype in being a "wealth client" with a high profile boutique style company.
    I had poor advice, and I will be posting my experiences under the "Managed Funds" section.
    As I am getting confusing advice/info from related companies, I wonder if there is anyone who has been through a similar experience.

    Cheers to all,

    GMG, Margo.
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Margo,

    Sorry to hear about this. I look forward to hearing about the experience as it makes me angry to hear about other "advisers" spruiking crap products purely to line their own pockets.

    Have you complained to FICS? (Financial Industry Complaints Service Limited -)

    Cheers,

    Dan

    PS I love working for a large bank, our compliance department makes sure we are doing the right things, in the worst case scenario our licensee can fix any issues for clients (eg, if the client has lost money they can pay the client). With boutiques they don't have deep pockets and unfortunately sometimes don't act in the best interests of clients.
     
  3. GMG

    GMG Member

    Joined:
    24th Sep, 2006
    Posts:
    16
    Location:
    Brisbane, QLD
    Hi Dan,
    Thank you for your reply.
    Yes, I am still considering approaching Asic and Fido, Fics and Appra.
    However, the first steps are seriously advising to deal with the companies involved, in the first step.
    If there is no resolution, then the next step is to deal with a formal complaint, meaning formal letter with all the incidents listed and noted.
    Record keepig is a must.
    I agree, the so called famous companies and spruikers have to go. But they will always come out of the woodworks when the market are changing. Shares or real-estate. Spruikers make their money regardless. Yes, more regulations are needed.
    However, in today's climate/ever changing rules, record keeping is a must!!!
    I maybe taking too much on, right now.Dealing with well established companies, however, spruiking and hype is BAD for most of us. The commission based advice is flawed. It does not address your's or mine personal situation. The bottom line is the life-time trailing commission for the life of the investment.
    Also, I will be asking for the idemnity insurance and the policy number.
    There are too many crooks peddling their self interests.
    In the interest of "small investos" it is a scam in my opinion.
    Tough times, many lessons to learn.
    Pity it is diverting my energies for doing a DA on my land.
    However, I have to deal with many issues now
    But I am learning to prioritise.
    Cheers,
    GMG
     
  4. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    GMC,
    Welcome to the forum.
    I am sorry to hear about the advise you've received.
    Please go ahead and start up a new thread.
    Take care.
    Bill
     
  5. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Isn't this what a real estate agent does to collect the weekly rental payments? From investigating it previously this was about 7% of the weekly income (obviously this differs agent to agent). Where I was previously renting the agent did sweet nothing...

    The idea of this is that your adviser will do annual reviews. This is quite handy when clients can't afford to pay for the review, basically anyone who doesn't have much cashflow, eg, anyone who isn't being paid by an employer (retirees, people on CentreLink benefits, etc).

    Cheers,

    Dan
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Not really the same thing ... the property manager isn't advising you on what property to buy.

    Anyone who stands to gain more by recommending one product over another is going to be accused of bias at some point - I don't think there is any way of avoiding that other than abolishing commissions from consumer financial products altogether.

    Of course as you mentioned, this would have the unfortunate side-effect of preventing some people from being able to afford financial advice ... but then - some people are possibly better off without the advice they have received anyway :rolleyes:

    I don't mind the concept of commission - but only if it is tied to performance.