We started VJC Wealth Management in 2010 exactly in the way this article states the industry should now be forced towards, as Accountants we could see the flaws in the financial planning industry, whilst we have had to modify our operation due to the failure of the industry to totally reform we still operate under the same principles.
- We are professional, ethical and demonstrate integrity.
- We welcome our clients referrals and will always operate in the correct manner.
An extract from the article:
As always, the answer to genuine and permanent reform in the financial planning industry lies in removing all forms of conflicted remuneration, product incentives and targets (not just some of them), irrespective of ownership. The industry’s leaders know this action will work and often acknowledge it, at least privately. That explains why such a solution has been so strongly opposed by the industry over many decades (and continues to be opposed).
The closest anyone ever came to where the industry needs to be on conflicted remuneration was the accounting profession’s draft ethical standard, APES 230. This was publicly announced by the Accounting Professional and Ethical Standards Board in 2012. Its centrepiece was a mandated five-year transition to genuine fees for service and the removal of all forms of conflicted remuneration. This version of the standard never saw the light of day due to a ferocious lobbying campaign mounted by an unlikely coalition of institutionally and independently owned dealer groups who were determined to destroy it (and did so). Their unprincipled action, combined with the weakness of the accounting profession’s leadership, set back the ethical development of the financial planning industry (and of the accounting profession itself) by many years.
See full article link below:
https://www.professionalplanner.com.au/2018/09/the-case-for-and-against-vertical-integration/
