Financial Advice

Superannuation Warehouse is an accounting firm and do not provide any financial advice. All information provided on this website has being prepared without taking into account the Trustees’ objectives, financial situation or needs. The purpose of this website 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 and the Fund.

With 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 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 are as follows:

• The fees charged by most financial planners are often regarded as overpriced

• Some financial planners make investment decisions with their clients’ Funds that benefits themselves, not the clients. In these situations, the financial planners might pressure their clients into making  risky investments. This could have disastrous consequences for the Trustees as failed investments would mean the loss of their retirement Funds

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 summarised as follows:

• Obey the law
• Do not mislead or deceive
• Act fairly
• Provide goods or services that are fit for purpose
• Deliver good or services with reasonable care and skill
• When acting for another act in the best interest of that other

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 when setting up an SMSF or for the ongoing management of an SMSF. Although, if you wish, you can obtain financial advice. Please click here if you wish to set up an SMSF.