You deserve an adviser you can trust
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has brought to light some banks and super funds that may not always have been providing a service that’s in the best interest of their members.
So how do you know who to trust? Here are three ways to check if your financial adviser has your best interests at heart.
There’s no financial gain in providing you with certain advice
Commissions have been banned on new products and investments, but some advisers can still receive ongoing commissions from financial products that were bought before 1 July 2013 (grandfathering commissions). Some advisers also receive commissions on products such as life insurance. There are obviously problems with this model, with some customers not realising the advice they were receiving could have been influenced by financial motivation. Many such issues were highlighted in the Royal Commission.
Make sure your financial adviser is not receiving any grandfathered commissions and isn’t receiving payment for anything they might recommend to you. You shouldn’t expect to worry that your financial adviser has recommended something purely because they could receive a reward for doing so.
They have a robust understanding of investments and financial advice
It’s just as important to ensure you are receiving financial advice that’s rooted in education, experience and expertise. You can always check exactly what areas your financial adviser is qualified to provide advice on before seeking their business. Factors such as years of experience and qualifications in financial services are good signs that your adviser might be better able to provide you with beneficial advice.
They are licensed to provide personal advice
Ensuring your financial adviser is credited to provide you with advice might seem like an obvious one, but it is important to check. Your adviser should list the name and number of the Australian financial services licence (AFSL) holder that employs or authorises them to provide advice. If they do not operate under such a licence, they are not legally allowed to provide you with advice.
Looking for a financial adviser who ticks all these boxes?
Intrust360° is Intrust Super’s low-cost financial planning arm. The financial advisers at Intrust360° are legally obligated to provide advice that will suit your needs (and not the needs of our company). Our advisers are not paid commissions, clients do not automatically pay ongoing fees and Intrust360° pays no dividends to shareholders.
You can read further details about the AFSL Intrust360° operates under, fees, remuneration and the services offered in the Financial Services Guide here. You can also give them a call today on 1300 001 360, or book an appointment online.