The Royal commission has proved its stock very early on.
Thus far and we should just remember that the royal commission has not got to the banks' bread butter as yet it appears the banks bought financial planning firms yet did not understand therm.
Why did they buy them? They needed them as salesmen ( and it was mostly men) or distributors as they are known in the industry to sell their products from their funds Management companies.
It does show up the extreme ignorance the coalition had when the ALP proposed legislation on financial planners which amongst other things sought to make the customer the main person whom the planner severed.
I agree with Alan Fels and financial; planning firms should NEVER be in a company that has a funds Management arm.
It is yet another failure of the ACCC. Remember the regional banks at all??
This royal commission will be still going on when the election is called. Nothing is going the government's way.
I should outline the major problems of financial planning.
They get trailing commissions on products the consumer has. They get every year and do no work for this money. some even want a percentage of the increase in wealth you get each year. Yet they will not reimburse clients if their portfolio goes backwards at all.
financial planners get money on the more money they can get not on whether the client becomes more wealthy and more importantly has a reasonable income in retirement.