Dixon Advisory’s second submission to the Financial System Inquiry argues institutionally-aligned advisers are not solely responsible for the scandals that have ensnared the advice industry.
“Business ownership is not necessarily an indicator of quality of advice,” the Dixon submission said.
“Recent concerns with bank-owned financial planners are well documented, but between 2008 and 2013, independently-owned network of financial advisers and accountants Professional Investment Services was found to be negligent in its provision of advice,” it said.
“[PIS failed] to adequately explain the risks involved investments, offer alternatives and advised clients to invest in the failed Westpoint Group companies and Queensland olive farm investment scheme,” the submission said.
Dixon Advisory also pointed out the disparity in cases that went to the Financial Services Ombudsman (FOS) between PIS and institutionally-aligned groups.
“Between 2011 and 2013, PIS, who has a relatively small client base, was involved in 162 FOS cases compared to FOS cases for bank-owned Commonwealth Financial Planning recorded at 94 cases and 31 for Macquarie Bank,” the submission from Dixon said.
ASIC ended its nine-month review of the Centrepoint Alliance-owned dealer group’s advice services and compliance procedures in July this year.
ifa sought a response from Centrepoint Alliance in relation to Dixon’s comments, but the company failed to respond by deadline.
This aged well…
As an employee of an institution and director of a number of advice businesses part owned by and institution, I can only vent my frustration with the point scoring against institutions. The advisers who run the businesses I work with are as client focused as any other. Their first concern on any matter is how it impact their clients, the next is how it impacts the business. They then deal with the institutional impacts. This is a logical order and means their motives are the same as the so called independents. Their behaviour in the media and on behalf of advisers as a group is much better.
Can we all agree we care about clients?
Spot on Mark Woods. Business has never been better and our approach hasn’t changed in 20 years – good advice and service builds enduring trusted relationships and referrals. The consistent theme of the ‘enlightened ones’ is to criticize the whole industry in order to market themselves and their value proposition.Waste of time – clients will determine whether the marketing matches the outcomes.
Disgraceful behaviour from Dixon, I actually employed an ex five year dixon advisor in my business, i had just purchased another book of clients and this individual applied to an add we ran for another advisor,let me just say Dixon advisory is the last shop that should open its mouth!
Well said Mark W, summed up beautifully,
we should all put our full names when we make comments ,
anyone concerned about providing a service to clients, This so called profession is getting more a of joke. Nothing more than product floggers. start building strategies and both the adviser and client will benefit
Dixon a is one trick pony i have spoken to ex employers no different to the banks no more than marketing strategies to increase the market share. i have clients whom have been to both is no more than marketing strategy. Clients are seeing through the BS, it shame the regulators are as yet.
This is what is meant by the phrase “the pot calling the kettle black. Dixon Advisory, the one-trick pony with major conflicts of interest in its advice delivery, and its unethical business practices is actually pointing the finger at another bunch of cowboys who stand equal in their business culture and morals. Classic….Obviously Dixon aren’t familiar with the term” people in glass houses should not throw stones”….
Good comments – Ian Johnston should take note rather than blaming fund managers and institutions all the time. I still cannot see how he blames institutions for the issues like Storm and PIS complaints ?
Also PIS advisers involved in Advising clients to invest in Chartwell Enterprises P/L based in Geelong , where a number of PIS clients lost all their money
So Macquarie at 31 obviously doesn’t include the couple of hundred clients that ASIC has recently identified are likely to be affected by substandard advice…
All this fighting amongst ourselves and meanwhile the real enemy, the ISA/Unions/Labor, are rubbing their hands with glee knowing that they are one step closer using the ageless ‘divide & conquer’ strategy. Brilliant, Dixon, pure genius you go feather your own nest while the tree is burning down.
Well, this brief article sums up in my mind all thats wrong with our “Profession” . All that seems to be happening in financial planning is one side taking shots at the other all worried about their piece of turf all sniping at one another and we wonder why we have struggled to get the confidence of the ordinary Australian, how about we all get back to focusing on what is actually important, “Clients” I have been in the industry since 1989, I have seen a myriad of change in legislation both at a strategic level as well as at an advisory level, and in the end I ask myself what has fundamentally changed? Absolutely Nothing except for the griping of which I have seen an unprecedented increase.
I dont care if someone works for AMP, CBA, ANZ, PIS or whomever there are more clients out there than an individual can look after so lets just get on with doing the best for the individuals that sit in front of us now instead of finding new ways to say why we can do our jobs.