The other day a friend asked me what I thought about the Banking Royal Commission. I replied that I was not surprised by most of what I had heard about the banks and the financial planners. I then gave my normal little speech on vertically integrated business models and the 'hopeless conflicts' that they create for the people working in those organisations. I then realised that my world is actually very far removed from 'bank-world' and my job as a financial planner is very different than it would be in a large institution.

When you operate your own financial planning business you need to be licensed. Some small firms apply for their own licences, but most find it more cost effective to become an 'Authorised Representative' of an Australian Financial Services Licence holder. There is lots of choice out there. The banks and AMP all offer licencing under different names for smaller advice firms. It's part of the vertically integrated business model mentioned above. There are also lots of privately owned licensees that you can choose from.

Financial Planning in Bathurst

When I started my financial planning business in Bathurst, I searched for about 9 months to find the right licensee for me. I spoke to a number of advisers about their licensee. These included bank licensed and also privately licensed firms. I was searching for a licensee that believed in my kind of investing, was driven by having great relationships with clients, and could provide support to make my business efficient.

I found a licensee called FYG Planners.

FYG Planners is privately owned and has no connection to any bank or institution. FYG Planners has no inhouse products so there is no bias towards any financial product. The goal of FYG Planners is for the advisers under their AFSL to build their financial planning business with their client being the first priority. 

FYG Planners encourages only the best financial practices and it’s somewhat of a ‘John West’ in the financial planning industry. Every year many financial advice businesses look to change their licensee. Hundreds approach FYG Planners for licensing. Upon scrutiny, FYG rejects around 99% of the financial advice businesses they’re approached by each year.

It’s a select licensee based on ethics, trust, investment philosophy, skill and, of course, a little bit of personality.

The 42 firms under the FYG license meet twice a year to continually update skills and keep abreast of best practices to better serve clients. This isn’t just limited to conferences, FYG has a massive knowledge base available and all firms are committed to supporting their fellow advisers. The overriding goal is providing clients with objective advice and personal solutions, which incorporates a structured and proven approach to investing and a fiduciary-based financial planning and wealth management service.

Finally, FYG management have been proactive in raising the bar for financial advice in Australia and around the world. FYG directors Peter Mancell and Jason Fowler are founding members of the Global Association of Independent Advisers (GAIA), a group of 17 advisory firms based in Australia, NZ , US, UK,  Germany, Sweden , Switzerland and Chile, who collectively have an overriding commitment to fiduciary excellence.

The group openly shares global best practices and those ideas flow back into FYG Planners, so advisers can learn from each other and better serve clients.

Fixed Fees

So if you choose to come to me for financial planning advice, you can be assured that I am working for you and only you. I am not a salesman for any financial product. In most (but not all) cases I charge fixed annual fees. This means that I get no more from you investing in the share portfolio that I may believe in or whether you invest in your auntie's kiwi fruit farm - I get paid the same. So if, after review, I believe the kiwi fruit is the best investment for you at the time, that is what I will recommend and facilitate (this kiwi fruit farm investment advice is general in nature and does not take into account your personal circumstances or fruit preferences - you should seek professional financial planning advice before investing in any kiwi fruit farms).

No-one is ever going to ask me how much 'Funds Under Management' I have added this month, how many insurance policies I have written or how many fees I have charged. You can be assured there are no 'hopeless conflicts' in the structure of the business.

It is rarely the individuals at the banks that are the problem. It is the business model. Any good employee in a team does their bit for the team. But as good hearted as the individual planner is, I believe that until he or she takes the step to leave the bank, or any other financial planning company that operates the same business model, they will always be in the middle of a conflict between the expectations of the shareholders to generate profits and the needs of the client.