One of the recommendations was to lift the quality of financial advice provided to consumers and to lift the minimum competency standards. The report noted that the competence of advisers varies widely and that it is difficult for the consumer to know the difference.

I support the call to lift the quality of advice. At Hewison, we pride ourselves on our advisers’ high level of training and education, with all our advisers holding university degrees and the Certified Financial Planner (CFP) designation. It is important for the Financial Planning Association (FPA) to continue to promote the CFP designation to increase awareness for the consumer.

The report also criticised the high level of fees in the industry, commenting that our fees “appear high by international standards.” The report condemned the banks and big institutions for tolerating conflicts of interest, and paying financial advisers to sell products.

At Hewison, we have been vocal on the topic of conflicted remuneration and “product flogging” by advisers. Choosing an adviser that is entirely independent is vital. It goes a long way to ensuring the advice received is unbiased and focused on “strategy” rather than “product.”

I encourage anyone that uses or is considering using the services of a financial adviser to take the time to research the company to ensure the advice they receive is not conflicted and is focused on strategy from a highly trained adviser. Like any other paid product or service, it is important to have a good understanding as to what fees you are paying and what quality of service you are getting in return.

Please contact us at Hewison Private Wealth if you would like to speak to an independent adviser.