Quality of advice is the real constant

Professional Independent Financial advice given in the "Best interests of the Client" is the goal we should be setting our sights on achieving.
Organisations with a vested interest in controlling how products are sold by advisers should be the primary target of regulators.

Product manufactures should be banned from owning or controlling financial advice firms unless they declare their relationship with the controlling entity.

If I want to buy a Holden car I would go to a Holden dealer and because they display the Holden badge I fully understand the relationship. The CBA & AMP have the right to sell their products, however they should say they are proudly owned by the CBA or the AMP. They should, however, never be allowed to trade or give the impression they are independent or their advice is unbiased.

They may say they give good advice and that may very well be true. However, they must provide that advice in a manner that any potential client clearly knows may be conflicted towards the owner of the advice business.

We as independent professional financial advisers are being controlled by the product manufacturers in their quest to promote their products and this control must be stopped. I have no issue with banks in competition with each other, however I do have an issue with their control of the distribution platforms. Independence of professional financial advice firms and the independence of platforms are vital to the provision of good sound advice.

On the subject of risk insurance, all that needs to be done is the removal of up front commissions of all versions. General insurance survives very well on level commission and life insurance will survive just as well.

I couldn't agree more with this article, if you go to a Holden Dealer you should expect to get a Holden, however if you go to a Dealer who advertises and makes it appear they are independent. But you are always sold a Holden, you have the right to know does Holden own all or part of the company! (By the way I have owned a number of Holdens). Regulation needs to focus on how institutional ownership effects where investors funds are directed.

The average customer may be looking for independant advice, however often they are directed towards the institutionally owned option.

By the way I am not opposed to Advice where customer will be invested with the Institutional Owner, this just needs to be clear to the customer in every occasion.

Those advisers that provide good strategic advice and outline direction/scope of advice being provided will always do best, people come to advisers for strategy above all.