Ian Helmore has worked as a financial planner in a big bank and a small business, which makes him well qualified to comment on the allegations emerging from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The commission has heard evidence of clients being given advice that has cost them their life savings, and being charged for advice they never received. This behaviour was often part of entrenched managerial processes, the commission was told.
Helmore says he isn’t exactly shocked.
“Am I surprised? Yes, at the nature of what I’m hearing – but also, no,” he says. “Having worked in a big bank, I know that…it’s a numbers game. There are lots of planners who want to do the right thing by clients, but a lot of the managers are very much focused on the bottom line – how much money is being brought in and how much profit there is – so there is a lot of pressure on planners to hit these numbers.
“But they need to be able to live with themselves. You need to be comfortable with the advice you’re giving.”
It’s one of the reasons Helmore is glad he left the big banks five years ago to join the financial planning arm of accountancy business Crosby Dalwood.
While the business is licensed with Count Financial – at this stage still a subsidiary of CBA, although the bank is reportedly considering its sale – Helmore feels the approved product list is comprehensive enough to offer a decent range of options for all of his clients.
“Count was set up as an option for accountants so our product list has quite a bit of depth to it,” Helmore says.
Nevertheless, he is aware of how egregious is the evidence coming out of the royal commission and he is making a point of bringing it up with all his clients.
“You can’t pretend it’s not happening, you need to be on the front foot with clients,” he says. “I make sure they know how I am paid and that there is sufficient transparency with the entire advice process.
“As a result, we have not lost a client, and there has been only one email from a client clarifying a few issues and asking a few questions, which is fair enough. Our clients have a long history with us and they know we’re looking after their best interests, because that’s something we have proven to them over time.”
Being part of a much smaller player helps, too, Helmore adds. “People also see us as a small business in Adelaide, rather than a big bank.”
So what does Helmore believe should follow from evidence to the royal commission?
“ASIC has been described as a bit of a toothless tiger, so if that is the case, it needs to be given proper powers to investigate and be properly resourced,” he says. “To be honest, some people prefer that their financial affairs be handled within a big organisation, such as the banks, but we just need to make sure that they’re given all the facts from the get-go.
“If someone is aware that they’re only being given one product option because it’s the bank’s product option and they’re OK with that, then that is an informed choice.”
Name of firm: Crosby Dalwood
Name of licensee: Count Financial
Time in the industry: 39 years, including 30 years with ANZ Bank covering general banking, lending, human resources, training and financial planning; last 14 years has been solely in financial planning for ANZ, Aon and BankSA
Academic qualifications: diploma of financial planning
Accreditations: Certified Financial Planner; Justice of the Peace, South Australia
Professional association memberships: Financial Planning Association, Financial Services Institute of Australasia
