David Simon, who has worked with Westpac for 15 years, has established a new business, named Integral Private Wealth, which is licensed through Westpac/BT’s dealer group Securitor.
The business will provide wealth management services to established business owners, executives, professionals, families and self-funded retirees.
“Integral Private Wealth will have an independent focus and will remain institutionally connected with access to the latest research and intelligence,” Mr Simon said.
“Australians seeking financial advice are seeking more transparent relationships, superior service and outcomes that are in their best interests. Integral Private Wealth is founded on these values.
“Establishing Integral Private Wealth is a logical next step and I look forward to continuing to help successful Australians build, manage and preserve their wealth,” he said.
Independence is a stretch across the board, unless you run your own licence, do your own research and charge under a pure fee for advice model there are links everywhere. As a consumer I want transparency and objectivity however I live in the real world and will need to employee a large degree of research and due diligence. I feel for the average Joe that needs to trust a mob of charlatan’s who eat there own to get a sale.
Whilst the summary of the Corporations Act is interesting, we only know that there are no commissions. The other 2 points regarding payments/ gifts are unknown. It all may be legal – but lets be honest from Westpac to Westpac owned licensee and the common thread of BT Life – independence is a stretch
S Sayan, I believe that Securitor is the Licensee and David Simon is an Authorised Representative of that Licensee. I also believe that Securitor receives commissions as part of its licensee income and most likely volume bonuses also.
Therefore Matthew Ross’s comments are probably appropriate and it does appear to be misleading to call the business independent.
[quote name=”S Sayan”][/quote]
Are you seriously saying that the Westpac/Securitor Licensee doers not receive:
– Commissions
-Volume bonuses
– or other giftss/payments/shelf space fees
You my friend are deluded, the term “Independent Focused” is the same as saying Independent and is not legal as misleading.
Sayan I’m pretty sure Securitor takes comms on behalf of its advisers. As you said its the “Licensee” that counts, not any Corp Auth Reps or Sub-Auth Reps that are licensed under the AFSL holder.
So its not legal.
One wonders whether the new firm will be paying market rates for its office space…
Matthew Ross since you mentioned it, lets take a look at the Corp Act:
The Corporations Act 2001 (Cth) prohibits financial services licensees from using the words ‘independent’, ‘impartial’ and ‘unbiased’ in relation to the business or the service that the person provides, unless:
the licensee does not receive any: commissions;
payments calculated on the basis of the volume of business the licensee places with an issuer; or
other gifts that could be reasonably expected to influence the licensee,
Although I personally disagree with an “independent focused” business licensed under Westpac, it is clearly legal. Let’s all calm down…
This entire article makes no sense. An independent Westpac adviser ??? WT ?
Hey IFA! How about a story on the misuse of the term independent?! By Westpac and their top adviser of all people!
There’s an article on the Financial Review website about this and states:
“Integral Private Wealth will maintain close links with Westpac, while operating an independent fee-for-service advice model that bans all commissions.”
This is serious David. This could be seen as misleading and/or deceptive conduct.
You can’t use the term independent. If I were you I’d be calling the AFR and ifa.com.au to pull the story before ASIC sees it.
Independent is defined in the Corps Act, it’s not the new marketing tool…
This is the same script used by CPA AA in their blurb
Are they all using the same PR mob
Don’t forget Mr Medcraft is available for the opening of your very different offering, if invited
Slow news day.
Licensed through and located in Westpac head office. Very independent.
To quote John McEnroe – “you can’t be serious!” Perhaps the statement should read “I love to have my cake and eat it too”
Surely ASIC should take an interest is such absurd press releases.
independent but owned by Westpac. I love it.