Every wage earner eventually arrives at their " last pay day " - when they walk out the door for the last time and become a " retired person ". Most do so with a very large superannuation cheque in their pocket, and the most important task of their lives waiting for a decision - choosing the financial adviser who will help make that money last them for the rest of their days.
Financial advice is a regulated industry and unfortunately there are no guarantees attached to the results. Investment options vary widely and individual skills play a big part in the plans consultants may suggest. Usually these involve a mix of investment categories to spread the risk and range from shares, property and interest bearing deposits - with perhaps a small foray into highly speculative but potentially high return options.
This is an industry which has delivered catastrophe to some retirees. The " Storm " debacle wiped out the prospect of a comfortable retirement for some people and various other schemes have appeared to be little more than an illusion - to syphon invested money into off-shore tax havens from which it simply disappears without trace. There have been " get rich quick " schemes that involve growing trees and harvesting the timber, and all sorts of scams have plagued the unwary who have trusted their financial adviser to guide them through the investment minefield - and take care of their money.
The previous Federal government imposed rules which some believe encompass investment advice in a " straightjacket " that impedes wise advice. There are plans to loosen these provisions, but doing so raises concern that it may bring a return " of the bad old days " when some investment advisers were more interested in their achievement bonuses - than the security of their customers funds.
It is essential that the guidelines that apply to investment advice impose strict integrity that ensures that the benefit to the customer applies at all times. It needs to forbid any sort of commission or other forms of incentive payment to the person giving that advice to steer investment from whence this reward is forthcoming. In the vast majority of cases where investor funds were lost in shonky schemes, there is at least suspicion that rewards played a part in those debacles.
The investment advice industry is an essential part of the finance industry in Australia and it needs oversight to ensure integrity. Gaining and holding the appropriate license should be subjected to regular review and the emergence of opulent lifestyles viewed with suspicion.
The people who trust financial advisers with their money have a right to expect that the government scrutineers who control this industry are there to ensure that their best interests are served at all times !
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