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The dirty secrets of financial plannersStuart Washington

Discussion in 'Financial Planning' started by whitgr, 8th Jul, 2009.

  1. whitgr

    whitgr Member

    3rd Jun, 2009
    The following artilcle with the heading The dirty secrets of financial plannersStuart Washington
    July 8, 2009 - 11:52AM

    was published today in the SMH which is not very helpful to the Financial Planing profession, it would be good if some of the associations replied to these types of articles to avoid sterotyping financial planners

    The dirty secrets of financial planners
  2. FinSpec

    FinSpec Member

    15th Jun, 2009
    A lot of business that I've consulted to have a very straight forward sales process and structure in place. They either find their lead or their lead finds them. They are given to the sales team that work out what they need and are then assigned an account manager to close the deal and look after them. The service or product which they get is provided by either the production facility, or the back office geeks - that is, the ones that actually know what they are doing. The account managers or sales people only deal with the process and relationship, not the product.

    In financial planning, being that it's supposed to be a profession, is different. You walk in a deal with the person supplying the product - but being such a competitive environment which is controlled by some of the most competitive creatures around - the big banks and financial institutions - it's a sales process that is driven around getting as many clients in as possible. And it is very competitive. Most accountants I know would love to get more business, but are not willing to turn what they do into a sale. Banks and financial institutions have no such problems.

    Many planners are employed as quasi sales people, and they are given targets to meet. Every single employee should have a target or goal that is alligned with the organisation that they work for. In some way, the targets and goals that are the things that are driving the sale culture - I have met many a planner that has left becuase they can't stand it. I have also met others that I gotten into it just to make the money and be number 1 - and they do the least amount of professional development to get there - for them it's just a job to make money. For some of us, it's more, it's about doing the right thing, to win for our client and to see their goals become a reality.

    Two very distinct type of people really.

    It's a system that is inherently broken and unlikely to change as much as we would like it to in the short term. I actually believe that one of the best things that can be done is proper education, ensuring that people understand what and who they are dealing with - but there is not anyone out there outside the government that is either willing or capable to do anything en mass that would really make a change, and I'm not holding my breath for a national campaign to education everyone about their finances!

    It's still buyer beware in the Australian market!

    Just my $0.02 :)
  3. Dolfinwise

    Dolfinwise Well-Known Member

    30th Sep, 2009
    Sydney Morning Herald

    Sadly, whilst written in a sensationalist manner there is much truth in the SMH article. Until our industry (financial services) wakes up to the reality that the legislators are going to bury us under compliance documents if we don't start putting our client's interests completely before our own then our image will continue to suffer.

    There is a better way and more advisers are starting to set up their buisnesses to avoid conflicts of interest. However until charging structures and vested interests are dealt with by the industry as a whole then caviat emptor -buyer beware.

    Clients need to ask their advisers to point out and explain in their FSG (Financial services guide) the conflicts of interest section in detail. They also need to ask how the adviser gets paid before taking advice and then upon receiving the statement of advice.

    Brisbane Financial Planners | Financial Advice | Financial Advisor
    Last edited by a moderator: 15th Oct, 2009