AIOFP Statement

As a member of the Association of Independently Owned Financial Professionals (AIOFP), we are sharing this video that they produced outlining the state of the financial advice industry in Australia. If another political party was in power, they might have done similar things, but the legislators of the changes to financial advice, including having small businesses fund ASIC’s expenses, were put in force by the current Liberal Government.

The cost of providing financial advice has no doubt increased, but it is not because your adviser is greedy and wants to fleece you, but rather the cost of serving has increased significantly through double handling of fee disclosures and doubling the frequency of renewals. In the video released by AIOFP, they explain that financial advisers do a great job helping people with their retirement and money for the most part, and we are sick of being the whipping boys for the big banks who are responsible for most of the failures highlighted by the Royal Commission in 2018.

There has been so much change to regulation over the years, and not enough time to see the effectiveness of the changes before more legislation is introduced. There is an exodus of financial advisers leaving the industry, with the number of advisers expected to be cut in half by 2023. This will result in the goal the government had of making financial advice more affordable and more reliable for the life of Australians having the opposite effect and making financial advice something for the wealthy, further dividing the rich and poor in Australia.

Here’s the transcript of the video:

Australia has endured more than $40 billion of failed investment products since 1980. Financial advisors have taken all the blame. This is unfair. This current liberal government has been treating financial advisors badly over the last seven years. It’s left you paying a lot more for financial advice. Liberal politicians are favouring the big banks, and the banks are getting even richer. Now the banks want to replace financial advisors with telemarketers, robo advice and computers. See the problem with this? It’s going to lead to conflicted advice about their own products. That’s just plain wrong. The Liberals are assisting the banks by forcing advisors out of the industry with unfair measures. Many have lost their business. Others, sadly, have ended their own lives. It leaves the consumer, you, high and dry. The truth is, it’s the politicians, regulators, and the banks that are at fault for product failure. They have avoided accountability by blaming financial advisors. Financial advisors only give advice on the products that have been released by the regulator and managed by banks. Unfortunately for investors, the system has failed them repeatedly, not financial advisors. The federal election is approaching. Financial advisors need your help to send a clear message to all coalition politicians. To voice your concerns and tell them one thing: that unless things change, you will reconsider your vote. If you want to save $7,500 over the next three years with lower advice costs, don’t want to deal with bank telemarketers or computers to get advice; and instead, once your personal financial advisor to survive in business, and look after you. We all need to send a clear message to the coalition politicians. Enough is enough. Listen. Stop supporting the banks or you will lose your seat. We will put you last on the ballot sheet. It’s time for coalition politicians and banks to start acting in the best interest of consumers, not themselves. Your advisor will be in contact with further information shortly.