Financial planners !

Financial planning is a huge industry in this country.  It is only lightly regulated, and yet those giving financial advice are gambling with the retirement funds of millions of people.   The outcome can be critical.   Good advice may see the retiree's live their final years in comfort and a degree of luxury - or they may be consigned to a miserable existence juggling pennies to survive on the old age pension !

The Trio Capital collapse does nothing to enhance confidence in the financial planning industry.   Trio Capital was lauded by the agencies tasked with grading investment schemes and once again the commission to those recommending it to clients raised it's ugly head.  Trio was a straight out fraud - and millions simply disappeared into overseas hedge funds - conveniently situated  in overseas tax havens.

Then came the outcome when the Federal government decided to intervene.   It promised a $ 55 million fund to provide compensation, but only to the people who invested on the advice of financial planners.    Those who ran their own superannuation funds - described as SMSF  - Self Managed Superannuation Funds - got nothing !

It seems that this was purely designed to restore confidence in the  financial planning industry - and to deliver a rebuke to those who had the temerity to manage their own funds.   It failed completely to sheet home the blame to the various government agencies who are supposed to oversee the honesty of investment schemes like Trio - and the credit agencies who bestowed that triple AAA rating.

And now - the final blow.

Months and months later the flow of compensation from this fund is still not happening - and it probably will not even start until the end of this year.

It seems that the people tasked with distribution are still trying to put together a computer generated model that will take into consideration the myriad factors of each individuals investment programme over the many years prior to Trio.    It is said that this is extremely complex - but so far nobody seems to be able to give an explanation as to what it will achieve - and why it is necessary !

It seems that those victims retiring now will have no option that to apply for the old age pension and start their final years in penury - in the hope that someday those highly paid to manage this compensation fund will manage to sort it all out - and they will get some money to live a better life.

Not exactly an outcome that will encourage investors to run off to see a financial planner !