David Andrew knows firsthand the difference some gentle guidance can make.
His first taste of it came when he was young, and his parents instilled in him the importance of principled hard graft.
“My father had an incredible work ethic,” Andrew reflects. “I grew up in a very nice home. Very nice, but also very tough, and I was taught a lot about accountability and honesty.”
The second lesson came when he left university and joined The National Mutual graduate program, where he worked in sales training and corporate superannuation.
“I had really great managers that nurtured me and I worked hard to return that loyalty,” Andrew says. “They invested in me and they cared for me, and I learned so much.”
Andrew’s role at National Mutual was a surprise considering he had spent that past six years studying sports and education at university.
“I thought about becoming a physiotherapist but in the end I decided it wasn’t enough of a core business,” he says.
“A core business is important because it is what people will pay for. If you’re a physiotherapist that is part of a broader wellness program and that program can easily be cut.”
So Perth native Andrew followed his nose into planning, and while it would have made good career sense to chase the big bucks in Sydney, he never did.
“I love Sydney as a place to visit but I wouldn’t want to live there,” he says.
“Perth really is a very livable city and a great place for my wife and I to raise our three boys.
“We also wanted them to be close to their grandparents on both sides.”
Breaking free
In 1999, Andrew struck out on his own and started Capital Partners Private Wealth, one of the few fee-based and independent planning firms in Perth at the time.
Most recently, it was a finalist in the FPA Professional Practice of the Year Award.
“I thought it was the right thing to do,” Andrew says of starting a fee-based practice.
“I had most definitely been in situations where the conflict was absolutely clear to me and I had worked with so many planners where this conflict occurred regularly.”
Andrew is a passionate advocate of a more a transparent system of payments and advice, arguing that most consumers are not aware whether the advice they’re getting is independent or not.
“What I would like to see is a complete separation of product and advice,” he says.
“There could perhaps be a dual licensing structure, whereby you either apply for an independent advice licence or an aligned adviser licence.
“Until the licensing changes, or the banks separate their advice from independent advice, then there will always be this confusion.”
Approach based on principles
Andrew says he takes a highly principled approach to his own business, and ensures all of his staff receives adequate training.
“We don’t have paraplanners as such, we call them technical advisers and we get them into client meetings as early as possible,” he says. “You’ve got to make sure you employ the best.”
While he is heartened by new university degree requirements among planners, he doesn’t think it’s a magic wand.
“I have a staffer who used to be a professional ballroom dancer and he never went to university,” he says.
“His commitment and discipline is fantastic and we will have to make sure he gets that further education.
“But at the end of the day, the fact that the didn’t go to university does not make him bad.
“There are a lot of people who went to uni who are not very good.”
Planner profileDavid Andrew Name of firm: Capital Partners Private Wealth. Name of licensee (if not self-licensed): Capital Partners Consulting. Years in the industry: 29 years – past 17 years as founder and chief executive officer of Capital Partners. Academic qualifications Bachelor of Education, Graduate Diploma Applied Finance, Graduate Diploma of Financial Planning. Accreditations: Accredited Investment Fiduciary (AIF), AFP, SFFin. Professional association memberships: Financial Planning Association, Institute of Company Directors. Other memberships: GAIA (Global Association of Independent Advisors). |
