I am a SME trying to combat the unbalanced current state of the financial credit system where the banks have the upper hand with regard to government funds guarantee. I am a technical person who’s real strength is producing real and tangible new products and industrial processes. I am not a financial expert. I just want a fair deal to develop and grow my emerging technology company. We want to borrow money to fund the manufacture of our unique (patented) automatic parts washing machines that dramatically increase the workshop productivity of Australian (and hopefully global) businesses. They are rented to End-User clients to clean mechanical parts.

The problem is that we, and I’m sure every other SME in the country, are having is that the 4 big retail banks in Australia are apparently the only supplier of equipment finance for industrial equipment purchases. Literally! My investigations have born out that all the equipment finance companies are just brokers for the banks. Other sources of capital that I am told existed before the GFC have it appears evaporated.

I now find out that these same banks own 40 – 50% of the financial planners in Australia! (see Rob November 11 2009 above) … Hello? What? … is going on?

NOW I understand why I can’t get a Financial Planner to look at my proposition for them to look at my business to create a financial product that suits our capital requirements and that could be a very attractive alternative investment opportunity for some of their clients. The banks own the Financial Planners who are compelled by the system in which they work that they can only “promote” company qualified financial products. Products that make lots of money for the banks and the financial planner companies… that are owned by the banks. Cosy.

So, what to do about it? Well, what about any one of you… self professed “honest independent fee for service financial planners” getting up off your #$&&’s and showing some good old Australian innovative initiative by contacting me and asking me about how you can add wealth to your clients “balanced” investment portfolio by investing directly into solid, real Australian products that yield a very high fixed ROI that also might just help the economy get back on it’s feet and as a little kicker … stick it up the banks at the same time! Bonus!

Incidentally, in regard to your advice on what constitutes a balanced portfolio for your clients, how many of you have ANY of you clients funds exposed directly to fixed income producing tangible asset products? None! No!

Nevermind, it’s not too late.

Financial planners will have to earn their keep openly from their customers as part of sweeping changes that will outlaw kickbacks and commissions and revolutionise superannuation and investment advice from 2012.

Fiercely resisted by parts of the industry, the changes go further than recommended by the Senate inquiry set up in the wake of the collapse of the Storm financial group that cost thousands of Australians their life savings.

Its all fine and well and fine to give non independant advisors a hard time, but honestly, to be put into a stereotype of being ripp-offs because clients of Storm Financail advisors were charged stupid commission amounts and ongoing trail fees is just ludicrous.

first of all, an advisor should not be advising a person to invest in margin loans against their home- what a stupid way of investing. second point, what happened to getting a second opinion? And nobody dare reply with “these guys are so crafty and can sell ice to the eskimos” responses!!!!!!!!!! an advisors role is to gather information and advise based on that. However, you as the consumer need to take responsibility for what you do and do not look to blame anyone around you if your desicion does not work out.

third point, nothing in life is guaranteed. This point is more relevent now thanever before. who would have thought that Iceland going broke would have caused the world economy to nearly colapse.

anyway, without getting off the topic too much here all I want to say is that providing finacial advice for a commission based fee is the only way the average Joe is going to be able to get advice. Lets not make the rich the only people who can seek our service. Yes there are sharks out there who will try to make the most of this system, but it makes me so mad how we concentrate on the few and ASIC who are meant to be governing this indusrty together with APRA just sit back and let peoples emotions dictate what happens in this indusrty instead of taking proactive action to catch and fine the few who give bad advice.

Maybe ure pro-commission Or work for commissions!

Anyway, I am not surprised that you can’t stop laughing coz it is indeed a joke for me too….joke is also what it should be for all those dodgey commission based planners for what they’ve made out of the industry!

Insulation job is what I was PONDERING/THINKING (selective reading is no good) of, but I soon researched about the insulation people and found it to be more dodgey so I never joined it – now im just working in the Financial Services industry.

R.

Sorry Rob, but don’t throw stones from glass houses.
Every profession has it’s good and bad people.
So like the posts above say. When looking for a financial planner. Do your homework.