Dumped by your bank? How to get your financial affairs back in business
The financial planner exodus from banks has seen a ‘new world’ emerge for the industry but where does that leave you if your financial adviser was one of them?
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry revealed instances of fees for no service, excessive fees and conflicts of interest in the industry.
Thankfully, the fallout has led to a drastic cultural shift in the financial planning landscape. Among those positive changes, are higher standards of ethics, better education and improved advice – all good things for people seeking sound financial guidance.
One example, is the Financial Adviser Standards and Ethics Authority (FASEA) releasing new guidance on approved university courses as it rolls out sweeping changes to financial adviser training.
Industry shake-up claims casualties
However, while the industry has been squarely under the microscope, there’s been some unfortunate casualties – as some of the ‘big banks’ and financial institutions announced they would shed their financial advisers. The banks’ axing of personal financial advice services has left thousands of people high and dry, unable to manage their financial affairs, let alone access their funds.
A necessary shake-up
Central Coast Financial Planning Group, Newcastle Financial Planning Group and Sydney Wealth Advisers welcome the industry changes, which have been necessary to heal the shaken confidence and trust in the industry by those affected by poor financial planning recommendations.
Look for a long-term financial planner
Central Coast Financial Planning Group is supportive of a transition from fee-focused recommendations to a system where financial planners act in the best interest of their clients, and where nurturing of long-term client relationships is encouraged throughout all levels of the industry.
Within the coming 12 months there will be fewer licensees and advisers in the industry as they leave due to the new requirements to deliver advice in line with the new compliance regulations – this is good news. It means you can find a financial planner who actually cares about you and your family, wants to fully understand your personal situation, and simplify your financial affairs so that you can reach your goals sooner.
As passionate advocates for the value good advice brings to people’s lives, we pride ourselves on delivering valuable, client-driven advice, free from the product and fee bias highlighted in the Royal Commission.
If you are one of those people left out in the cold following the banks’ decision to cut their personal finance services, we’d suggest you see this setback as a positive opportunity to seek out a new financial planner who is going to take the time to understand you, providing you with a sense of security.
Make sure your new financial planner is compliant with the changes
Although the industry is facing a major structural change with new compliance requirements being rolled out, Central Coast Financial Planning Group are in a positive position for the changes.
Following the Royal Commission, we worked through the framework and developed our own internal systems and processes to be proactive and deliver highly compliant results. The decision to internally audit all advice documents before sending for official vetting, means we are ahead of the game in response to the changes that are underway in the industry.
Being local, we see our clients regularly, with a team that makes our clients feel welcome in our offices, or alternatively, a location convenient to the client. Physical distance and regularity of contact between client and adviser was a focal point of the Royal Commission.
Choose a financial planner who considers the whole picture
Central Coast Financial Planning has a thorough process to ensure we understand what drives our clients and what makes them happy, to form a complete picture of what it is they are trying to achieve.
We complete thorough research on our existing financial products, develop the most appropriate strategy aligned to their goals and use them in selection of the most appropriate products for them.
Once their Statement of Advice is implemented, Central Coast Financial Planning Group meet with clients on a regular basis to check-in, identify if their current circumstances have changed since their last plan, and adjust their strategy accordingly to ensure it is still working to achieve their goals.
We ensure complete transparency with disclosure of the fees for our services. We have open and honest conversations about our fees, believe in the value we provide and will only ever proceed with clients who fully understand how we are remunerated for our advice.
Reach your financial goals
Our advice to anyone who has been dumped by their bank and who are now without a financial adviser is to reach out to us. Our advisers have a combined 153 years’ experience between them, and, we’ve been proactive as the changes have unfolded. Our forward-thinking systems means we’re prepared and already compliant and practising in line with the new requirements.
Contact Central Coast Financial Planning Group on 02 4323 2877, ask@centralcoastfpg.com.au or click here to book your consultation to discuss how we can get your financial affairs back in business so you can reach your financial goals sooner.
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
