FM FINANCIAL SOLUTIONS PTY LTD
- A LITTLE ABOUT OUR FIRM …
Established in 2004 by Fergus and Margaret
Hardingham. FM Financial Solutions Pty. Ltd. [AFSL: 327277] is an
independent boutique financial planning firm located in Pyrmont, Sydney.
FM Financial Solutions is neither owned nor aligned with any firm
or institution (such as a bank, superannuation scheme, fund manager
or life company), as a result we are not tied to, or influenced by
a 'parent' firm and their agenda or business requirements.
FM Financial Solutions is a fee-only firm,
our 'flat fees' are agreed to with the client prior to providing advice
or a service. As a result of our fee model, where a commission is
payable from an investment or insurance product, we rebate 100% of
all initial and on-going commission or brokerage to our clients. This
has the affect of reducing the end cost of the investment or insurance
policy to the client.
Our Consultative Approach
We believe in comprehensive financial advice
that is both professional and independent from bias or influence.
We specialise in creating tailored financial strategies for our clients
who value their time and require professional financial management
to preserve and build their wealth.
We provide strategic advice that's right
for each individual's circumstances. A complete in-depth understanding
and analysis of your lifestyle, goals and financial circumstances
forms the foundation for the development of the required financial
strategies.
What areThe Advantages of
Engaging An Independently Owned Financial Planner?
Being 100% Independently Owned enables FM
Financial Solutions to implement the following principles:
- operate on a flat fee for service basis.
- wherever possible rebate commissions to clients in
full.
- not receive rebates or other volume based benefits
from any life company or investment platform provider.
- not receive benefits from any party that may influence
the advice provided to our client.
- provide full disclosure of all fees payable by our
clients.
- offer whichever services or products which we believe
to best suit the client's needs free of any conflicts of interest
or 'potential bias':
According to the most recent ASIC Shadow
Shopper Survey: The survey also found that 'bad advice' is six times
more likely if the adviser had a potential conflict of interest
due to remuneration and three times more likely if the adviser is
recommending in-house or associated products. Source: Financial
Standard 6/4/06.
Not only Is FM Financial Solutions Independently Owned – We
are also Independent
According to research undertaken by www.independent-advice.com.au
fewer than ten (10) advisers in a sea of over 16,000 financial planners,
appeared to properly satisfy the legal definition of “independence”.
The Legal Definition of an Independent Financial Advisor / Planner
The Law states that financial advisers can only
call themselves "independent", "unbiased" or
"impartial" if they (and their associates) do not receive
any of the following:
- commissions (apart from commissions that are rebated
in full to the person's clients)
- forms of remuneration calculated on the basis of
the volume of business placed by the person with an issuer of
a financial product
- other gifts or benefits from an issuer of a financial
product which may reasonably be expected to influence the person.
ASIC's view on rebating is also
quite restrictive.
"ASIC considers that the requirement that commissions
are 'rebated in full' is satisfied if, as soon as the commission
is received, it is rebated to the client without delay by:
- rebating an amount equivalent to the commission
directly to the client by cash, cheque or other direct means (eg
by direct credit to a bank account nominated by the client); or
- offsetting any debt owed by the client (ie a debt
owed before the commission was received by the licensee) by an
amount equivalent to the commission, except in circumstances where
the amount of the debt is calculated by reference to commissions
expected to be received by the licensee.
ASIC does not consider that the requirement that commissions
are 'rebated in full' is satisfied if a client's account with the
licensee is credited with the amount of commission received, where
funds in the client's account may be used to meet future liabilities
of the client to the licensee and the client does not have the right
to demand payment to it. This is because the rebate is not immediately
available to the client in these circumstances."
(Source ASIC QFS38 Published 10/12/2002;
Revised 25/11/2003)
The source of the rule is section 923A
of the Corporations Act 2001 can be viewed at the link below :
http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s923a.html
So what are the attributes to look for
in a genuinely independent & conflict free adviser / financial
Planner? There are three …
1. Full Ownership
If the advice is being delivered by someone who is employed
by a product manufacturer example, Bank / Super Fund (or is related
to them in some way), then their advice can be conflicted.
We own our business – and have no links
with any product manufacturer.
2. No Commissions
Are there any payments being made to the planner by
a product manufacturer? In fact, more broadly, does the planner
receive any payment that doesn’t come direct from his/her
client? If so, and it isn’t rebated in full direct to the
client, then the advice can be conflicted.
We are paid by our clients not by third parties.
3. No Asset-based fees [% Based
Fees]
We charge flat fees, agreed with our clients based on
the services the client wishes to subscribe to not according to
how much money they have to invest.
**************************************************************************************
Fergus
is a Certified Financial Planner and has been providing advice for
over eight years to clients and helping them to understand their financial
plans and achieve their objectives. Fergus has
a strong technical back-ground, specialising in superannuation strategies,
and specifically government and semi-government superannuation schemes.
