In a statement released yesterday, NTAA Advice, the industry association’s financial advice arm, reminded consumers of the Storm Financial collapse and warned against taking advice from a “stranger”.
“We teach our children about stranger danger, but we don’t always listen to our own advice,” the statement said.
“The fact is that it’s not just our children that should be wary of strangers. Millions of potential retirees should be equally scared of strangers when it comes to investing their life savings.
“An estimated 3,000 to 4,000 investors in Queensland, New South Wales and Victoria lost around $3 billion, after placing their savings with financial planning group, Storm Financial before it collapsed in 2008.Storm’s cavalier attitude to investing in shares ruined the lives of thousands of elderly investors.”
Referring to the Best Interest Duty introduced by FOFA, the statement asks: “How can an industry be so bereft of integrity that the government has had to legislate that they act in their clients’ best interests?”
NTAA spokesperson Kristyn House issued a direct warning to “soon-to-be-retirees”:
“If you want to protect and maximise your retirement savings, ask your accountant how,” she said.
“If they are a qualified financial adviser, great; if not, at least they will be able to guide you in the right direction. Don’t go to a stranger who has just recently had the law changed on them so they are now forced to do the right thing.”
According to Ms House, an accountant is “the one person people have learnt to trust with their financial affairs”.
Agree
Craig, you are being a little naive.
Were that to happen we would have happy well advised clients, logic and common sense would prevail.
Nooooo, we need the self serving attitudes of the NTAA and FPA to make the world a better place.
We’d be better without both of them.
But I do agree with you, it’s how I’ve worked for over a decade.
We need to work together to be on the clients side, the good ones already are.
The thing that bothers accountants most is the fact that their exemption to give limited financial advice where appropriate has been revoked while financial planners have had their exemption to provide tax advice extended. Accountants should stick to tax and accounting advice, financial planners should stick to investment advice and where there is overlap they should use each others expertise to get the best result for their client.
Who is the NTAA anyway? And who is Kristyn House? NTAA are not the Institute (ICAA) nor the CPA, nor even the body representing Public Accountants. And what qualifies me to be a Tax Agent? Am I a para-accountant? Can I call myself an accountant if I join the NTAA? Or am I ‘only’ a tax agent? Or is this just a publicity stunt for NTAA Advice – their new dealer group….Where do I sign?
The argument is both self-serving and lop sided. Never a client lost savings or incurred the wrath of the ATO whilst chasing tax driven returns (or is that an oxymoron)following advice ‘the one person they trust’ or did they?
Lets see if the F P bodies extract an apology or start litigation for slander etc. You can bet if she made the same comments about solicitors etc, there would have been some interesting legal responses. Enough time wasted on this pathetic person.
Lets burn the past. The future belongs to those accountants and financial planners who can work together and build great financial models to serve the customer. On a lighter note we need to be grateful to the government for all the complexity government has created, which in turn gives those in the industry the opportunity to provide clarity and strategy to the customer.
Didn’t ‘all accountant’ put clients into failed MIS schemes?
You know someones short on facts and justification when they use the word ‘most’. ‘Most’ Blah, Blah, Blah, ‘Most’ Blah Blah Blah. How many? Most of the Accountants and FPs in our practice are great people…. Except for Brian(not his real name) who is a serial under achiever and loves Collingwood. Should I therefore conclude that ‘most’ people who are named Brian are under achievers that barrack for Collingwood…or was that ‘Most Collingwood fans are named Brian…or or or!! Never mind ‘Most’…A meaningless call..
“enfagment” Rick. Sounds a different overseas conference but I think I will pass.
How many clients have been victims of dodgy audit sign-offs and corporate fraud from internal accounting and finance teams. Come-on princess. What planet are you from?
[quote name=”Steve”]Most FP’s overcharge & underperform. FACT
Accountants are much the same.
Lets all go on conference overseas & have a group hug!
It will all be tax deductible of course…….ill send you my $395 bill for that saving ok. Just sign the enfagement letter…….[/quote]
Of course, the challenge for anyone in business is to not fall into that ‘most’ category. In the end, whether you are an Engineer, Accountant, Financial Planner, Lawyer or a Real Estate Agent, the market always rewards the exceptional, not the mediocre. Thanks to the GFC and FOFA, FPs are further along than most professions in that regard, and in many ways better equipped to handle change and competition. Accountants would be well advised not to take for granted their future relevance in this rapidly changing landscape. We should be working together for the benefit of our clients and the future profitability of our practices, this seems to be a no-brainer.
Most FP’s overcharge & underperform. FACT
Accountants are much the same.
Lets all go on conference overseas & have a group hug!
It will all be tax deductible of course…….ill send you my $395 bill for that saving ok. Just sign the enfagement letter…….
Accountant held on fraud charges after being arrested attempting to board plane at Sydney Airport
Read more: http://www.smh.com.au/nsw/acco…
Another CRIMINAL ACCOUNTANT getting caught.
do you people now the NTAA is setting up their own licence for advice work out the motive of the story before you comment. useless trash of a story
there are a few baiters on here making the discussion ignorant. Accountants and F Ps work together they need each other for the process to work
The NTAA is spot on. Keep up the good work. I would trust an accountant any day, but not a financial planner.
I agree with Mel.
Mel I could not have said it any better. It is unfortunate that some segments of the various factions tries to get a financial advantage by denegrating a whole industry; sadly the client’s interest is the last concern on their mind; it’s all about self interest.
[quote name=”Tim Rogers”]Hmm – Westpoint, Great Southern, Timbercorp, FEA plantations, vineyards, olives, almonds, SMSF’s left in cash through extended bull markets. These are all frequent examples of poor advice provided (often illegally) by accountants. Pull your head in Ms House, get your own backyard in order and work collectively with everyone to improve the quality of advice available to all Australians.[/quote]
Well said Tim. The problem with accountants is that these tax dodgy schemes were sold by them whilst wearing their ‘financial planner’ hat; so when the product blows up, as many have, planners get the bad rap because the product recommended was lousy, whilst the accountant (the same person in many cases) get away with it, because it only provides tax advice even though it was purely tax minimisation driven and unlikely to have considered what was in the clients best interest.
As both a Chartered Accountant and an Authorised Representative, I do not understand the sniping between sections of the professions. There are many accountants who will need to brush up their planning skills, as there are many planners who do not have the proper grounding in tax advice. The proposed increased educational standards for all accounting and planning professionals is a positive step, particularly for the client. Focus on what is best for the client, not what is best for you.
If anyone is ‘bereft of integrity’ it is Kristyn House. Using her position to publicly denegrate another profession to try and give her constituency a boost. The majority of accountants and financial planners work very well together, to be benefit of our clients. However if I was to trust a stranger, I would be far more trusting of a financial planner. The advice will be in writing, the planner will be qualified to provide the advice and there are compensation mechanisms in place (including a responsible licensee). Meanwhile accountants give advice that is unlicensed, verbal and in most instances there is little recourse if something goes wrong.
Its disappointing to see the majority of planners here prefer a head in the sand reaction, to reject a call for improvement, to be outraged but not introspective.
I recognise its confronting but its preferable to have a conversation about improvement than incur more articles like this or public comments like bereft of integrity.
It would be fair to say that 95 to 98% of all industries are there to act in the best interests of their client. There are rogues in every industry. CBA supplied product to Storm…just saying
Considering the NTAA represents the tax/accounting bottom feeders being the tax agents, their comments about financial advisers/planners becomes even more ironic. As the NTAA is now trying to get these ‘professionals’ to study the same course(s) that they criticise for advisers having completed, this smacks of a desperate outfit seeing it’s relevance diminishing by the day. The fact that fees have been raised may have something to do with their average member charging $90 a quarter to complete a BAS. The idea of large, well earned fees for strategic advice would be extremely foreign to many of them. This is the case particularly with most agents establishing SMSF’s on behalf of clients and their clients stick their money in a bank account. … It seems to have been lost that these tax agents which this association represents, number in the thousands and have no experience in providing financial advice. Are they to be trusted with the retirement savings of the Boomers about to retire?
It seems to me that Ms House forgets that accountants also rip off their clients via fraud and embezzlement. not sure of stats but it happens. Accountant charge asset management fees and still do, also most are retrospective rather then pro active with their clients (in other words couldn’t care less how much tax they pay). i just find Ms House comments offensive that she should hold the accounting profession so highly and our industry so low. Since an accountant can’t give managed fund advice I guess all those pre-retirees she has reached will end up in illiquid property and term deposits and out of super. She is a joke unfortunately I have stopped laughing and want to fight back.
Well done Rick. Totally agree. Let’s not waste time responding to the comments here. I would still like an apology from the NTAA though. I would also like our industry bodies like the IFA, FPA, AFA, IFSA etc to call for an apology as well. “Silence is acceptance” and there is nothing wrong in having the dignity to stand up for what you believe in. ie the good work we do for hundreds of thousands of Australians.
Well said Rick. Lets show some dignity and stop giving oxygen to these fools who just want fire us up. We all know our value proposition!
Here! Here! Rick, 1000+ happy clients and rising by the day. End of story!!
Rick I [u][b]APPLAUDE YOU[/b][/u].
Yes there are a few stooges on here trying to wind people up. i agree with Rick
Leop…well said…instead of looking for someone to blame, planners should be working together to come up with a long term strategy to fix the perception that the public has about them. This perception problem is industry wide which means all planners (both good and bad) are being painted with the same brusha joint problem needs a joint solution and with 8 out of 10 advisers either directly or indirectly working for a product manufacturer such as an Institution or a Dealer with an integrated model (in-house products)the challenge of changing the publics perception is enormous but in the long run will ultimately benefit everyone.
exactly what I was thinking but very well said Rick.
I’d like to suggest that FPs on this forum refrain from defending their fee models, their industry or their ethics. Many of the comments posted here are designed to exaggerate perceived industry deficiencies, manufacture client dissatisfaction and erode adviser morale, and they are delighting in your defensive replies. Boycott the losers – call a client, have a coffee with a colleague or work on your business, just don’t let these underachievers waste your time, you have better things to do.
the anger and defensiveness in this comment thread is understandable however a poor reflection on planners. the low reputation and derogatory language used towards planners indicates you are in crisis. the article should start a conversation on how to improve your reputation among the community. this is your customer base and they don’t trust you!
instead you are all crying foul. you have missed the point. you need to address how you are going to be trusted
I agree with Dave; Steve JJ has no idea of business and would have more appropriate adjectives to describe him and he is remarkably silent on his contribution to the world. I don’t know about any one else, but I have yet to see any menu of services in any of the surgeries I have been but I am told upfront how much an examination is going to cost. Any additonal cost are provided once an examination has been complete and the extent of any ongoing ‘service’ is required. Anyhow he is another one no worth spending time with; we have to learn to forgive ignorance and dismiss it accordingly.
Steve – jj
Your use of dentists is instructive as it illustrates that a conflict between fees and duty of care will always exist: it is how it is dealt with that is important.
http://www.smh.com.au/national…
Your comments about relative qualifications are plainly ignorant and not based on fact and so I shall ignore them.
Despite this bad egg, I still see my dentist, still trust him to do the appropriate level of work on my teeth and not over-service me in the pursuit of fees and am still suffer from initial shock at the cost (but eventually reconcile myself the fact that it is necessary and worth it).
But thanks for raising it even though you provide rebuttal of your own argument.
This really was an extraordinary item! I agree with many of the bloggers in being surprised that the NTAA would sanction such an intemperate spray. It can’t have done the association’s reputation any good. I am also disappointed that IFA has published such nonsense. Again it harms an otherwise good reputation. But, most of all, I join the blogger who requested that contributors include their names. To be taken seriously they should be prepared to accept responsibility for their comments.
Steve JJ – We are taking a page out of the dentist fee book, we are passing on ALL cost to the clients, we have to, the days of non fee work are over. Every FP is now looking at their service offering and looking at how they are going to recover their costs, and if they cant the services won’t get offered or supplied. Steve jj, have your ever been self employed, been personally responsible for paying the bills each month, had your personal assets on the line every day. I doubt it. I bet your in a nice cosy government job and have never taken any risk in your life.
Serge
steve jj is not a planner, he is a disgruntled toff with nothing better to do and should not be on this forum and treated with the same disdain as ntaa
[quote name=”Serge”]In response to ‘Steve-jj,. You obviously have no idea. I am hust as educated, having ongoing training, paying all my insurances and office support and having to deal with FOS which our industry pays for and is reflected in our costs. Our clients know exacrtly what they are paying for before they enter into any form of fee structure to pay for my overheads. [/quote]
To even suggest that the average FP is as well qualified as a dentist is beyond a joke, this is whats wrong with the FP industry.
Do your clients have menu for fees so they can decide what services to pay for, or do they have a choice of 2 or 3 levels of service. Rather different.
Are you fees open for all to see?
In response to ‘Steve-jj,. You obviously have no idea. I am hust as educated, having ongoing training, paying all my insurances and office support and having to deal with FOS which our industry pays for and is reflected in our costs. Our clients know exacrtly what they are paying for before they enter into any form of fee structure to pay for my overheads. I belong to two professional bodies. I also provide a lot of free service and emply 10 people. What’s your contribution to the world apart from a sinical view of business and something you don’t understand.
A completely misguided and stupid article followed by equally stupid remarks of support. ‘Whistle blower of truth’. What a joke you are. Your ignorance and ineptitude is on display. Put your real name to the statement so we all know who public should avoid.
To think that our combined practice has utilised and are members of the NTAA as well as CPA. At our next practice meeting they are history.
[quote name=”Rhonda”]We’ll I don’t know about you, but I am just about to go to see a Dentist who is a total stranger to me.
But I know that I will be parting with a large amount of money for his professional service and will leave me with a sore face.
I don’t get what you guys are complaining about![/quote]
Rhonda – your dentist has an open and published fee structure, and YOU decide what items to purchase. They do not attempt to tie you into a continuing fee for service, for standardized quarterly reports et al.
You basically pay your fee for an hourly rate, that includes overheads, and materials. Your dentist is a highly qualified, by many years of education, professional exams, and ongoing training. They also have to deal with insurance, and a professional body that can take action against them, plus the legal system.
You and other FP could take a leaf out of their book.
The silence from Ms House is deafening. Surely you would have expected a “right of reply” to the comments made over the past 2 days. Simply gutless!
As professionals,we help our clients make smart choices about money, including choices about the level of service and the fees they pay. Our clients are delegators who are good at their own professions and want favourable financial outcomes for their future. They get excellent value for their money.
“If you want to protect and maximise your retirement savings, ask your accountant how”?????!!! Um, I am pretty sure that constitutes financial advice and if they aren’t a qualified adviser, then what you are proposing Ms House is illegal! What an incredibly ignorant, naiive and dangerous thing to say. Shame on you!! If the NTAA doesn’t issue an APOLOGY, then they agree with illegal and irresponsible behaviour.
We’ll I don’t know about you, but I am just about to go to see a Dentist who is a total stranger to me.
But I know that I will be parting with a large amount of money for his professional service and will leave me with a sore face.
I don’t get what you guys are complaining about!
Hello ‘Whistle Blower of truth’; you are a coward and obviously a failure who has no idea what he is talking about. Every professionaln is judged on the level of fees he or she generates. How do you justify the cost of tax return from H&R Block as compared to that of a top tier group. What about the free advice and assistance given to client and especially those who can’t afford it. Go back and crawl in your hole.
Im sorry but this article is spot on.
You might think your an angel but that does NOT give you the right to stitch them up with massive service fees, engagement contracts & invoices constantly. The FP industry have been vampires in charge of the blood bank since its inception & everyone knows it. In every firm ive worked in sucess is measured on how much the FP has earnt….EVERY FIRM! Still to this day, despite government intervention & ridiculous compliance regimes, the FP still prowls the land searching for the next deal, scouring the clients assets for whatever they can boldly justify as a “fee for service” rip off. No other industry gets stuck into the feed trough for such little work(that the clients wants, needs or benefits from). The planner justifies his worth by the savings on tax or the benefit of his strategy but thats exactly YOUR JOB, THATS YOUR MOMENT OF TRUTH! Why the MASSIVE fees?
I am not so sure about an accountant is the one person people have learnt to trust with their financial affairs”. Given the fact so many accountants are in jail as we speak including former president of the national institute of accountant for masterminding a Vanuatu-based tax-evasion scheme.
I work in an accounting firm as a financial planner and don’t find accountants have a problem with good advice. They accept that not all is good but see the same in their industry. I am so sick of woman in leadership roles like Kristyn making women looks like complete idiots. Its not fair on the rest of us.
What about the accountants that have been put in prison for fraud, for stealing money in tax returns being banked in their own personal accounts. What about the accountants negligent in advising business deals that flounder through lack of appropriate research….. pot calling kettle black.. or is it that some accountants dont believe they live in glass houses
Financial Planners and accountants usually work very well together, in the best interest of their clients. They have done so for decades. Ms House should get out and speak to her members. Her comments reflect very poorly on herself and her organisation.
Why has this ridiculous, unfounded, stupidly idiotic article been given any space on the ifa page. Brings ifa’s integrity down. If you report it, you partially validate it. This is beneath you, ifa.
Leop; you still won’t declare your cards. Doesn’t say much about you. The public perception is only there because of people like you that won’t look at the real facts. Anyhow you’re not worth my time
Well the bad media has legs because there is truth in it.
The truth is there is a huge number of Australian households scarred from poor planning advice. That is the planner’s truth.
Am sure vested interests are jumping on an injured player but irrespective, the public perception of planners is, or close to, as Ms House described.
So rather than compare yourselves to other professions, your conversation should be about improving your reputation if you want to be trusted.
Anything less looks like more self interest on the part of planners.
Looking forward to a public apology from the NTAA
The so called public debate is only being raised because of vested interest and hence the bad media. We have had our issues but you do not acknowledge the issues faced by other professions of which you might belong. So where is your balanced argument. I think ‘abs’ has hit the nail on the head.
i’m an accountant and a financial planner… as professional individuals, both look at issues with a different view, very differently. from my experience, both have different perspectives, merits and scopes. you CANNOT slander or disparage the merits of a planner and there are many things an accountant can just not think off or advise or do. it is like asking accountants to serve steak with butter knives…
You are at the point where there is public debate concerning a lack of trust and being ‘bereft of integrity’. Listing examples of why people think advice has been lazy is not the conversation when examples are so copious its the accepted norm. Address the reputation guys – how are you going to be trusted?
loep you’re obviously not a planner; like all professions we have a good and bad apples and would suggest there are more jailed accountants and lawyers than financial planners. As far as incompetent advice; well I’ve found it all professions. The only reason planners are under attack is because of veted interest from organisations such as the NTAA and the industry funds. So do your home before you make any form of allegation.
My head has just exploded!!!
No Leop, it’s broad sweeping denigrating generalisations (have a look at your comments here) which have no basis nor evidence that offends hard working professionals that do a great job for their clients.
It is also the hypocrisy of the NTAA that riles.
“So much financial advice is lazy and worse, inappropriate for the client.”
Got any evidence to support your assertion that “so much financial advice is lazy” or “inappropriate for the client”?
All the comments show anger at Ms House but I suspect the nerve hit rings true.
So much financial advice is lazy and worse, inappropriate for the client. Planner reputations are in ruins. It is an untrusted profession. It not wrong of Ms House to point this out, even if done indelicately.
This i wonder if based around the new dealer group NTAA has set up, been in discussions with my accountant and he is a member and has said NTAA has been very agressive in wanting them to sign up as authorised reps. Probably because AMP and other dealers are trying to steal their thunder. Always a alterier motive unfortunately
So, what action or statement is forthcoming from the bodies representing planners. NTAA-NO Credability, no professionalism and NO ETHICS, then again, FPA and others may be right in dismissing such comments as dribble from a shrinking violet with questionable intelligence.
That snicker you can hear is the Industry Super Funds laughing at the Accounting & Financial Planners sectors self immolate. Whilst they steal away all our customers. Such back stabbing articles do nothing to help our professions, they just pull the NTAA into disrepute. Ms House you have done the Accounting profession a huge dis-sevice and identified yourself as no friend of our industry.
Other than being grossly inaccurate, self serving and insulting`, I think the most disturbing aspect of Ms House’s comments is the remarkably arrogant and immature way her (and presumably the NTAAs) views have been expressed. This is hardly the kind of conduct one would expect from a professional organisation in 2013.
I have a number of friends and colleagues who are NTAA members – we’ve worked closely together for many years and our relationships have always been open, transparent, and based on mutual respect, so it is disappointing to read that elements of the NTAA actually endorses these ridiculous views of the financial planning industry and then seeks to differentiate their ‘value proposition’ in such a reckless and amateurish manner.
I think NTAA members should take a hard look at the people representing them.
Wow, what gross, clearly self-serving generalization of a whole profession.
Ms House is correct when she says that people should be “scared of strangers when it comes to investing their life savings”.
I am sure that she intended this to apply equally to accountants as to financial planners lest she be accused self-serving fear-mongering.
Even so, I do think that her trivialisation of child abduction for whatever reason was a quite distasteful.
Either way, I am very surprised that she is suggesting that accountants provide services outside their area of competence. No professional would act with so little integrity or with such disregard for the duty of care owed their client.
I am even more surprised that she is encouraging her members to act in defiance of the legal regulations that govern the provision of financial services.
Well said David, especially your last point, I agree completely.
Firstly, the article seems to be about trusting a stranger. So, are accountants not ‘strangers’ as well? What makes a planner any less a stranger than an accountant?
Then, let’s talk about all the accountants that recommended their clients get into Agribusiness – an entirely flawed industry that has drowned. Thank your accountant spruiking the ‘tax advantages’ there. I could go on with many more examples.
But now some criticism directed towards this website and the IFA. Using this hate-mongering unbelievably one-sided self promoting article as a headline is comparable to calling the O’Reilly Factor from FOX News, a healthy and informative news station free from bias…Please, pick up your game IFA or risk being another celebrity magazine for our industry.
Does Ms House include the considerable number of accountants I have found to be giving unqualified advice or talking people into an SMSF then grossly overcharging for it’s administration while referring the clients to their real estate “mates” ?. Blindly trusting ANYONE who says “trust me” is dangerous and many a wolf wears sheep’s clothing. Does ms House tar herself with the same brush as the crooked accountants just as she tars the many ethical planners with the Storm brush? And where were the accountants of the Storm clients while all that stupidity was going on? Spare us the sactimony.
I think this is a bit rich.
Remember a lot of the clients who invested in Westpoint and the like were from Accountant referrals.
Every profession has bad apples, and at the time, while others don’t realise they are bad when they give the advise.
We are all on the same side, that is of the CLIENT.
For disclosure, I am an accountant who is also an authorised rep.
James J
It would seem your diatribe is on the increase.
I fail to understand what you are hoping to achieve with your one man crusade against the Financial Services.
Unless it was to make us all smile. If so, mission accomplished!
Happy Trolls to you!
Ms House, have you read any testimonials from clients of financial planners lately?
I am totally embarrassed with this comment, being an accountant/financial planner myself for over 20 years, it is clear Ms House knows absolutely nothing about the industry or just stirring the pot for self interest.
This article focuses on one bad scheme (which if you look at the ASIC website it shows how many accountants are prosecuted/jailed for fraud on a regular basis!!!).
I find it strange that she recommends talking to your accountant about retirement savings, when accountants can’t give financial advice, only if they are like me (licensed) and I am appalled with her comments as I know many, many terrific financial planners who do wonderful things for their clients! Shame on you Ms. House (ignorance is not acceptable).
The NTAA is typical of the Associations that represent an industry. They are no different to the AFA and the FPA. Self serving with no actual value based outcomes. I will be interested to see how the AFA and the FPA react to this article. Just as well I enjoy the sound of crickets.
Just as a side note, I searched online for Kristyn House because I would like to see who this representative of the NTAA is and how she qualifys to make her comments. Alas, the search came up empty and lets face it, who’s worth searching for on the second page of google. So it would seem that even a nobody can get press time these days.
RE James J comment.
GO AWAY.
I work with a accountant and have succesfully for over 13 years. We dont need this rubbish.
Just the sort of self-serving opinionated garbage that media outlets love! A very poor and ill-considered marketing strategy Ms House.
Kristyn, these comments are derogatory and unhelpful and I hope you were mis-quoted. As the head of a financial services licnesee and a Registered Tax Agent myself I am seeing more inappropriate advice coming from some particularly commercial accountants “flogging” property in SMSFs via limited recourse borrowing which seems to be the flavour of the month. Before that it was the 10% commission on agri-business schemes and geared structured products and before that aggressive tax planning. With the advice profession subject to a Best Interest duty under FoFA and soon TASA and with accountant’s limited licensing on the horizon, I think its more productive for the joint accounting bodies to work with the advice profession going forward to ensure the most professional and robust outcomes for consumers. Happy to discuss. Craig Meldrum
THINGS I DO NOT NEED:
. advice to shop for my groceries
. advice to shop for my house
. advice to shop for my annual leave
. I’ve been with my wife since she was 14yrs old = 52 years….,didn’t need any advice there.
. raised two successful, well qualified sons with whom I’me well pleased
WHY WOULD I NEED ADVICE TO INVEST MY MONEY WISELY ?…. Keep your Accountants and Advisers.
“I’ve never heard of an accountant advising a client to create a SMSF with a starting balance of $50,000.” He said with tongue firmly in cheek.
Is this the same organisation which channels its
training and seminar income to the private company of one man? Is this the same organisation that has the one and only NTAA endorsed financial planning licence majority owned by the same man and his own family? If we are going to discuss integrity, lets start here. Are you listening ASIC and the ATO?
Dear Kristyn,
Have you bothered to dig up the skeletons in your own back yard?
kind regards
Kristyn, My mother always taught me to get the whole facts before shooting my mouth off , your comments are so biased it beggars belief you speak on behalf of a professional body such as accountants.
There is no doubt the one size fits all view of Storm was inappropriate and cost investors dearly , however are you totally ignorant of the impact of some Accountants?????
There are PLANTY of PROFESSIONAL FInancial Planners and Accountants that DO provide a great service to their clients , our industry does not need people like you making Self Orientated comments that ignore taking a balanced view just to promote your own cause. It is these type of comments that do MORE harm as it could scare investors away from getting advice — also if Accountants are to “guide you in the right direction” should they not be licensed to do so – OR do you not see that as an appropriate requirement — just because I am an Accountant does not mean I know everything – as clearly you DONT
I think many of the comments here have missed the point; perhaps not read the statement or even this article.
NTAA have said don’t trust financial advice from a [u]stranger[/u].
If you [b]KNOW[/b] a qualified advisor and trust them then that’s ok. If you [b]KNOW[/b] and trust your accountant then that ok too.
In contrast don’t walk up to a shop front and to a financial adviser you’ve never meet and just trust them. If they qualifications and are members of professional bodies that helps build trust, but until you know them be careful. But nobody should just walkup to someone and on first meeting trust them significant savings… its just common sense and it applies to all professionals.
Geeze, I remember my dads accountant charging him $10,000 to do do the financial statements and accounts for his SMSF… I suppose thats the integrity you’re talking about Kristyn House???
Another soul feeling lonely and needing attention, you must be to make these comments. Am I correct in assuming those who fell foul of standards within the ICA and CPA are now hiding under a new banner. Lets have an all out verbal war and call each profession a mob of rogues. Feel better now-what did that achieve. It may surprize this clown that a very high percentage of accountants and planners do and have been for a long time-working together-why-because both sides are smart enough to recognise the complementary synergies. Careful mate, the mud may start flying and the number of candidates listed for misconduct may grow-in your group.
I qualified as a Chartered Accountant in 1996 and a CFP in 2002. I have no axe to grind with or barrow to push for either the accounting or financial planning professions. Both are made up of mostly honourable people and both can point to examples of dishonourable behaviour. Kristyn House’s comments are ignorant and immature. They continue to incite fear and distrust in the mind of clients of both accountants and financial planners. I’m sure she will look back on these comments in a couple of days with regret.
Pretty confident accountants have never put themselves before clients…except for the one time I was charged ~$5,000 for submitting a nil company tax return
Shame on you Ms House! If there is anyone bereft of integrity its those who dont look in their own back yard. Accountants drove the structure tax driven products whereby millions were lost’; accountants have recommended clients to invest in SMSF with sums as low as $30,000 and there more accountants in jail for defrauding their friends than there are financial planners.
What a nasty, small minded comment. Not that I want to start a sledging match, but no industry is without those lacking in “integrity” certainly not accounting. According to KPMG (1st of May 2012) accounting fraud remains the most common form of fraud.
I work with a number of accountants and we have a mutual respect:- we value and recognize each offers expertise and service offerings. Financial planning has come a long way in the last 10 years and whilst there is still room for improvement I believe the industry is now more robust then any time in the past. The comments made by Ms House are quite bewildering given the many financial planning/accounting JV’s. Will the NTAA deny memberships to accountants that hold proper authorities or are involved in Financial planning JV’s? The comments only erode consumer confidence in BOTH industries.
Very poor form indeed.
Seriously do the members of your association really want you representing them with such tripe coming out of your office. You are a complete joke and your attitude to blanket the entire industry with complete non-sense is really immature and counter productive. I have worked with NTAA members over many years and between us we work in harmony and for the clients best interest. Your ill considered comments should see you sacked for simply being stupid and divisive – if you wanted your 5 minutes of fame you certainly got it for all the wrong reasons. Way to go NTAA.
I have been working in Financial Services since the 80’s and never have I witnessed such a self-serving diatribe from a member of the accounting profession.
I am sure there will be many Financial Advisers who can give instances of clients that have lost substantial amounts of money due to “accounting” errors as well.
Thousands of FAs are extremely moral and ethical and for many the legislative changes have not had an effect on the way they do business because they have always had the client’s best interest at heart.
I am just flabbergasted that a spokesperson for a professional association can be so vitriolic and biased when talking about another segment of the market that they should be working with, not against.
Ms House, you may want to read up on Lynette Liles, a former President of the National Institute of Accountants. She’s serving 5 years in jail for some of her clever accounting work……….pretty sure she’s someone I wouldn’t trust.
Isn’t it time for all sections of the financial services industry to band together rather than trying to tear each other to shreds.
you seem to forget all tax driven schemes flogged by accountants directly. Generally “planners” were not involved! Ms House and the NTAA need to stop flogging a dead horse it just demeans their standing to offer any creditable commentry. There is problems in both camps!
What a load of garbage!! Ms House would do herself a favour and check some of the ‘unprofessional’ Accountants out there. I have come across some really dodgy accounting advice which has placed clients in a situation against ‘Best Practice’ The Accounting profession is no different to any other, ie, there are rogues in any profession or business. Perhaps ASIC could get off their backside and conduct some investigations into members of NTAA. This raises the question, how come other Accounting organisations have not made an issue of this? Or is it that they try to hide their advice structure behind the Accouning flag!!
Give me a break. Every year I am cleaning up accountants mistakes when it comes to SMSF’s and other superannuation matters! And where is an accountants integrity when they are advising a client to start a SMSF with $40,000 in super and put it into Term Deposits just so they can get some fees by doing the tax return? Way too many inadequate cowboys in the accounting industry
Ms House,
WOW! I love how you have picked out the storm collapse as the basis for your argument.
I would like to point out that accountants over the years have also been involved in their share of corporate collapses. Although not directly correlated the collapse of Enron sent a global accounting firm out of business.
I wouldn’t normally comment on an article but seriously…build a better case than that!
Hmm – Westpoint, Great Southern, Timbercorp, FEA plantations, vineyards, olives, almonds, SMSF’s left in cash through extended bull markets. These are all frequent examples of poor advice provided (often illegally) by accountants. Pull your head in Ms House, get your own backyard in order and work collectively with everyone to improve the quality of advice available to all Australians.
I assume the NTAA will also provided a warning to consumers not to get advice from accountants due to the billions of dollars lost from “advice” given from accountants to invest in gum trees, emu farms etc?
Um have you heard of Brad Sherwin? and Wickham Securities? Fine upstanding Accountant he was….just one of the many accountanst who clienst thought was their friend….
What a disgraceful spray. No doubt the bottom dwellers in financail planning are ‘bereft of integrity’ but you will find exactly the same if you analyse the bottom 20% of NTAA agents. Let he who is without sin cast the first stone.
What ridiculous comments have been made in this article. Are we to assume that everyone knows their accountant before they meet them? Surely they are just as much strangers as a consumers financial planner prior to meeting them! With due respect your accountant is NOT a financial planner and I dont see any greater integrity in this profession to use the massive over use of Self Managed Superannuation Funds to unsophisticated persons as a case in point. Please be careful when throwing stones in glass houses Kristyn. The laws that Accountants have to live by have also changed does that not put you in the same position??
Gee. I wonder how all those accountants over the years have managed to find their way into gaols if it is such a scrupulous profession!!
Don’t tar all financial planners with the ‘Storm’ brush the same as you would have said for your own industry.
AND how many accountant’s clients were placed by their accountants into tax driven timber and agricultural schemes paying upwards of a 10% commission during the last round of tax driven minimisation strategies designed to purely save on tax bills but burn capoital at an astonishing rate. The accounting lobbyoist willnot address this elephant in the room.
An accountant I know is currently being sued by a client for giving for advice he was not qualified to give. It is costing hime and his family dearly because the Accountants PI wont pay! Though he did believe the accountant exemption was enough to protect him. It does not! Many mistakes are made by accountants. I ask you is an accountant going to sit their for hours discussing client needs and actually doing the work required, I doubt it, stick to doing tax returns and leave financial planning to the real professionals who look after clients best interests.