Smart Happy Money 9: Is it time for a banking Royal Commission?

People may assume that because I work in financial services that I am not in favour of a banking Royal Commission, this could not be further from the truth.

For many years now, we have seen a steady flow of complaints and scandals around our big banks and in particular their financial planning arms. Most of these involved employees of the banks taking advantage and ‘advising’ clients to do what was best for the advisor not the client.

At BGN Financial Management, we put the client first. This is one of the reasons why we have never aligned ourselves with one of the big banks.

A banking Royal Commission will be uncomfortable for many people. Advisors like myself will be tarred with the same brush as those who have done the wrong thing, but in the end, isn’t it better to air the dirty laundry so we can move on to a system where the best interests of the client come first?

I have come across people who have received very bad advice from the big financial institutions. A Royal Commission could clean this behaviour up. I’m not sure I can think of a time where corporate transparency has been a bad thing.

A Royal Commission is coming, the banks know it, we have seen and will continue to see the banks sell-off their troublesome assets, like their financial planning arms. This leaves them able to say, ‘I understand that our past behaviour has been bad, but we don’t do that anymore.’ If you happen to wander into a bank and ask about superannuation, well, they will say ‘we don’t provide financial advice, but we have a product you will like.’

Is it time for a banking Royal Commission?……… YES.

Ben Graham-Nellor is an advisor, coach, blogger and speaker who has worked in the financial services industry for over 15 years.

BGN Financial Management Pty Ltd is a Corporate Authorised Representative 468796 of Professional Investment Services Pty Ltd AFSL 234951 ABN 11 074 608 558

The information in this communication has been prepared on a general advice basis only. The advice has been prepared without taking account of your specific objectives, financial situation or needs. Accordingly, you should, before acting on the advice, consider the appropriateness of the advice having regard to your objectives, financial situation and needs. In cases where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a Product Disclosure Statement (or other relevant information statement) and consider such document before you make any decision about whether or not to acquire the product. For these reasons, it is imperative that you seek advice from your financial adviser before making any investment decisions.

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