Superannuation Warehouse is an accounting firm and do not provide any financial advice. All information provided on this page has being prepared without taking into account of the Trustees’ objectives, financial situation or needs. The purpose of this page is to introduce Trustees to the different types of financial advice in the market.
Financial advisors are usually independent practitioners who operate in a fiduciary capacity whereby the client’s interests comes before their own. Clients are generally required to answer a series of questions which allow the financial advisor to devise the optimum investment strategy for the client.
With the financial advice, clients are constantly in contact with their financial advisors so that the advisors are updated on the client’s investment objectives and make the necessary changes if required. There is a lot of human intervention in the portfolio management with the traditional financial advice.
There is a perception that financial planners may not act in the best interest of their clients. The main disadvantages to using a financial planner is as follows:
The Government announced the Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry in 2017. The result is that almost half of all financial planners exited the industry due to dramatic changes in the sector.
Justice Kenneth Hayne identified six main standards that he recommended via the Commission to be implemented when providing financial advice and these can be summarized as follows:
Although these are honorable objectives it created major changes within the industry and many Trustees are skeptical of the financial advice sector.
We do not require clients to obtain financial advice and it is not a legal requirement to use financial advice. Although if you wish you can obtain financial advice. Please click here if you wish to set up an SMSF.