CBA.... CPF....

WoNgA said:
Thought I would post this up for people to read.

http://www.smh.com.au/business/prof...avings-and-hid-its-tracks-20130531-2nhde.html

Man, lucky I got my own SMSF now.
Click to expand...

A famous case and a lesson to be learnt, what we saw is that the 'gatekeepers' being ASIC, sat on their hands and failed their duty of care, some investigation is taking place but ASIC got away from this scot-free. As we know this is not the only case, this resulted in a major (or not really major) enforceable undertaking by ASIC at CFP which is now completed and there are many others, so before using a financial advisor head to the ASIC website and do a background check such as disqualified director check to determine if any action has been taken against that individual or ask people in the industry. Same applies to people in the property industry, I always do a background check before I affiliate myself with any individual and my business
 
Yeah that whole CFP case was a joke. CBA and ASIC really showed their true colours. Storm Financial was another similar, debacle.

I was recently advising someone on a case they had against their financial planner who put her into a completely inappropriate investment and as it turned out even forged a page of the application form adding in non-existent assets and income. Even with all the evidence it was still a fight for her to get compensation. FOS was next to useless. She called it quits with a 50% payout on the losses suffered. Which was a decent result but still disappointing. Took me 2 years just to convince her to take action! She still believed she had been unlucky up until I convinced her otherwise.

The further along the process she went she realised how badly she had been rorted. She had been naive for sure but the FP was seriously derelict.

Going through the correspondence from the financial planner it was obvious to blind freddy he was only concerned about getting her into a product to earn a commission. Her financial needs were barely considered. It really was appalling.

Not too say all FP's are bad but geez the bad ones really do give the industry a bad name.
 
Agree boyracer, your example is unfortunate as forging is fraud, the organisation itself should take action (most banks have a 2nd line compliance dept for a reason), I have taken part in the so called 'independent expert' investigations as part of an enforceable undertaking, how much was slipped under the carpet was a joke, I was pointing clear issues to them which were ignored in the final report.

Yes, financial advisor have a brown shade on their industry, lets hope FOFA changes that a little.....I said a little!
 
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