As highlighted in the Royal Commission, financial advisors in banks are offering products that will ensure they get commission rather than what bank and product is best for their clients.
Westpac is getting out of financial advice, coming to the realisation that there is actually a conflict between being a bank and providing customer’s unbiased and impartial financial advice. That shouldn’t be a new revelation, that’s been quote obvious for a long time.
It might actually be that BT and Westpac have some good products but that needs to be kept well away from the advice giving process. It probably stands to reason that, if you work for Westpac and are paid salaries and commissions by Westpac, that your customer’s may end up with BT or Westpac products as opposed to say a NAB product which may have been a better fit for the customer. Sure, no conflicts there.
Commonwealth Bank also recently announced that they plan to exit financial advice but this will be “later” as they need to deal with more immediate issues which have come out of the Royal Commission.
So what does this mean for Power2 clients… absolutely nothing! We are not tied to any banks, insurance companies or product issuers. We can choose whichever companies and products are in the best interests of our clients.
Are you in a Westpac product but the NAB product is better, then we’ll recommend NAB. Are you in an Industry Super Fund and that is best for you, then that’s what we’ll recommend. We get paid by our clients, not by the product providers, it’s the best way to stay free of conflicts.
Choosing a local, unrestricted financial advisor ensures YOUR best interests not the best interests of the bank.
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