Apr 27, 2018

Financial planning isn’t even close to being a profession, and that’s the problem

The poor quality and lack of professionalism of financial planners is a huge problem for all Australians.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Dover Financial's Terry McMaster leaves the royal commission

A question that has repeatedly been asked at the financial industry royal commission is whether financial planning is a "profession". No one's been willing to give an unqualified "yes", but there have been a few guardedly optimistic answers; one witness described it as "an emerging profession". It's clear from this week's hearings, however, that even if there are a number of independent, quality planners who place their clients' interests first, financial planning is a very long way from being a profession, and we've been fooling ourselves about how close it is.

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6 thoughts on “Financial planning isn’t even close to being a profession, and that’s the problem

  1. The Curmudgeon

    Am writing this with the TV on, with Rowena Orr reciting a litany of now exposed abuses. If a fraction of this sort of behaviour had ever been revealed about trade unions, conservative politicians would have been calling for the restoration of the death penalty.

  2. klewso

    Relativity ….. Once removed from the world’s oldest.

  3. klewso

    The funniest thing happened while I was reading this :-
    After years of having to personally organise a tête-à-tête (for which I assumed we were paying “fees” anyway – but hardly ever experiencing, let alone “annually”) if we wanted one – a meeting which seemed to be an impost on our previous “advisor/planner”;
    The person responsible for “overseeing” the management of my portfolio rang to ask me when would be a convenient time to organise a phone meeting with the person recently assigned to look after that portfolio (as the previous “advisor/planner” had moved on)?
    ….. After years of studied neglect, while taking fees, suddenly there’s a need to provide a service we’d been paying for? …… What’s gotten into them?

  4. Awkward

    A doctors solution to anyone passing out by hyperventilating is to get them to breath with a paper bag over their mouth. Brings em around in seconds. I think he took a fall. What a gutless human being.

  5. AR

    It’s hard to imagine why McMaster “was excused for the remainder of the current batch of hearings,” unless it is to give him time to consider his options because it surely suggests that he will be top of the witness list when the Commission next sits.
    Calls have already gone out the Alan Bond’s doctor who diagnosed the dementia which, blessedly proved to be only short term – rather like George Pell’s aviation precluding heart problem. (Not including lack of same.)

    1. Woopwoop

      Judging by the photo, McMaster’s better already!
      I’ll consider consulting a financial planner when a) they have to have studied a decent course, and b) when they tell me how many hours they’ll spend on my case, and charge an hourly rate no higher than a top medical specialist.

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