The Royal Commission into Banking, Superannuation and Financial Services
The Royal Commission’s long-awaited final report into misconduct in the Banking, Superannuation and Financial Services Industry was delivered by commissioner Hayne on Monday afternoon.
So, what does it mean for us at Acquira Wealth Partners? Well not much really, since many of the recommendations reaffirm the path we have been on is the right path.
Many suspected that the banks were putting profits ahead of their customers, but many of the financial advisers that worked for the banks were doing their best to serve their clients best interests.
Commissioner Hayne’s recommendations regarding Financial Advice are an attempt to tackle the problems he sees negatively affecting the industry regarding;
1. Ongoing fee arrangements,
2. Lack of independence,
3. Quality of advice
4. Conflicted remuneration.
In establishing Acquira Wealth Partners our first priority was to deliver the highest quality of advice and that meant not being licensed by a bank, financial institution or any business that had a product suite that would potentially lead to any conflicted remuneration. GPS Wealth Ltd (our licensee) was established in 2012 by Rob McGregor, a passionate financial adviser and Greg Holman, a successful accountant and business leader, with the goal to provide financial advisers a pathway to deliver quality advice that was in the client’s best interest.
GPS stands for Goals, Planning, Strategy – in essence, what financial advice should be about. GPS Wealth has gone on to win the Best Licensee for the previous 3 years in their peer group.
Our fee structure has always been clear and transparent with a ‘fee for advice’ model that is not tied to assets under management nor the receipt of any 3rd party commissions. Advisers were previously required to have their clients to op-in to their ongoing fee arrangement every 2 yrs, however, we have operated a best practice and done this annually as part of your annual review. One of the requirements stipulated by the report on Monday is that this now must be done annually.
Over the coming months, there will no doubt be more fallout across the industry as many advice businesses struggle to adapt to the recommendations handed down by commissioner Hayne. For us though, at Acquira Wealth it will be business as usual and we would encourage you to contact us with any questions or if your friends, family or colleagues are looking for an advisory firm, please feel free to introduce them.