Is the financial planning industry going to die with all these new laws or will it thrive in the future.
Some of my friends are looking at getting out of the industry into real estate because FP is becoming a joke with over compliance …
Will this happen in the real estate industry as well …
D
Hi D
You mean the new laws coming in which will mean fin planners cannot get commissions? I heard about it briefly on the radio, but don't know the details.
I guess people will be relucant to go if they are going to have to fork out money – but the irony is that they may be better off under this system.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A couple of other changes that will also come through include: Accountants will no longer be able to set up smsf which they can do at the moment (they cannot give advice about what shares/assets to buy unless they are licensed to advise) and it does not look like that getting financial advice will be tax deductible, the last one will really hurt if people planning their finances must pay for advice and not be able to offset the cost of achieving the returns.
I agree with Wealth about the over compliance.
What next we will be providing personal guarantees over the performance of any investment.
A Financial planner cannot receive any commission from an investment what a joke all because of a small percentage who do the wrong thing when it comes to greed. To me many small investors will suffer and not receive any form of advice because they cant or dont want to pay the upfront fee. Others will end up paying more for the advice they do receive.
The mortgage broking / Credit provision industry is going thru a similar regulation and again many part time Brokers will end up leaving the industry because of the increased costs of regulation and compliance. (Not a bad thing in my opinion).
Like with anything I will see what plays out before deciding which way i turn.
Richard Taylor | Australia's leading private lender
If it means cutting out future trailing commissions, it should mean a proportionate increase in immediate commissions and consultation fees.
Brokers have to live.
I bet all the Brokers would like to have reciprocal rights to " adjust " pollies' income so as to " clean up their industry. "Pollies are brazen hypocrites. Canberra and Macquarie St should clean up it's own act first.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
All we need now is for the real estate industry to clean up its act …
Any person who sells and investment property must be licensed.
Maximum fees for marketing companies selling investment real estate to be caped at 5%
Any person standing on stage giving "financial advise" must hold a license. – developers – property options etc
All directors of companies must hold a "license" – it's called being liable.
Any builder or land developer paying commissions must disclose entity and license number.
Finance brokers, accountants, financial planners selling real estate must disclose full commissions and hold appropriate licenses.
All sales people selling or advising finance products and home loans or real estate products must be licensed.
The educated people will prosper and the slick BS artists will leave the industry for good … Yahoo …
Builders, land developers and marketers will need to rethink their strategy.
It'll be a very long lineup at the " licence desk ".
And the market place will be deserted.
Stage will be empty.
The one leaving town will be full.thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Those advisers that are good will survive, I see this as a very good thing for the industry. Those that are good can explain to their clients the fee they are charging, and feel confident the client will pay. The dodgy ones, a very large portion, now have to explain those hidden trails…….. I have clients walking through my door all the time unaware they are paying a trail to a planner. And others that have been told to sell their well performed IP's only to put the monies into a comm's based managed fund or super plan…….
I had one client in the other day that was moved from there existing AMP super into another AMP super fund product with the reason being to reduce management costs- they were charged a fee of approximately $7000 for this privilege. Even with the comm's scrapped we will not be able to sort out these gangsters. I have found this to be the case many, many occasion's….. Financial planners need to be regulated as the work is not very client focused. The more compliance the better, actually I think the compliance hits the wrong people, Why not set up a body to investigate these gangsters. Not like COSL (as decisions take over a 1 year and they forward the real cases to the courts at this point- a large waste of time and money), but a real mediator with real authority that Mum and Dad investors can access……..
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