‘Integrity Always’ is not just a slogan in Advice SA’s branding, it is our difference – it is central to every client relationship.
During the Royal Commission Inquiry into Misconduct in the Banking, Superannuation and Financial Services Industry, many findings have undermined consumer trust in our financial institutions.
While the Commissioner provided 76 recommendations to ensure the practices, behaviour or business activities of financial services entities reflect community standards and expectations, only a few recommendations specifically apply to financial advice.
Key recommendations for financial advice:
- Ongoing advice fees to be annually reviewed
The Royal Commission’s most shocking revelation was the ‘fee for no service’ scandal, where customers were charged without a service provided.
With Advice SA, it may be refreshing to know that what you need is what you get.
Advice SA’s review service offerings are tailored to your personal situation. You can access reviews at agreed intervals to make sure you’re achieving your financial goals. Each review provides a fresh look at your situation and what you can do to make the most of your finances.
Advice SA’s review service already incorporated the Commissioner’s recommendations, including the requirement that fees are reviewed by the client on an annual basis, the services that the client will be entitled to receive are recorded in writing and include the total fees that are to be charged.
- No more trailing commissions
While trailing commissions were discontinued in 2013, it was only applicable to new products. However, it did not stop commissions for products that had already been sold – known as grandfathered commissions. The Commissioner recommended that grandfathering provisions should be repealed as soon as is reasonably practicable.
Advice SA does not receive any grandfathered commissions.
- Reducing commissions on life insurance
In accordance with Advice SA’s fee-for-service philosophy, all commissions built into life insurance policies are switched off, resulting in a reduction of your annual premiums by 20 to 30 percent each year for the life of the policy.
Take the first steps to a positive experience with a financial adviser, by booking a consultation with Advice SA today.
Mark Bastiaans is an Authorised Representative #296627 of Guideway Financial Services Pty Ltd ABN 46 156 498 538 AFSL 420367.
The information provided above contains general advice that does not take into account your financial situation, specific needs or objectives and is not intended to be personal financial advice and should not be relied upon without written advice from Guideway Financial Services Pty Ltd.