Adviser register ‘a waste of time’

Reflecting on the news that the adviser register industry working group has begun meeting to discuss the government’s proposal, the co-founders of White Collar Quotes – an online tool that connects consumers to a “network of high quality advisers” – have anticipated the project may not meet its stated objectives.

“This proposed register is a complete waste of time in our view because when push comes to shove, consumers can’t pick good advisers from bad advisers,” said co-founder Josh Golombick in an email.

“The whole CBA scandal has highlighted what we and many have known for years – that good advice is very hard to find.”

Fellow co-founder Greg Einfeld – who describes himself as an “independent planner” beyond his work with White Collar Quotes – said the most common path for consumers finding an appropriate adviser is to go with a recognised brand.

“The big banks and financial institutions have the almighty advertising dollar behind them which coerces consumers to see institutionally-aligned advisers,” Mr Einfeld said.

“While a lot of these advisers still care about their clients, it is very difficult for them to give the best outcome to their client due to their limited product choice.”

However, the latest Roy Morgan survey results suggest a great number of consumers are still confused about the ownership structure of their advice provider.

Meanwhile, AIOFP executive director Peter Johnston has announced he will use his position on the industry working group overseeing implementation of the adviser register to push for an explicit distinction between independent and institutionally-aligned advisers.