alemanegy

  This startling figure comes from a recent review of the financial advice offered from the big four banks by the Australian Securities and Investment Commission (ASIC). Even more startling: 10% of advice was found to leave investors in an even worse financial position. Through a "vertically integrated business model", Commonwealth Bank, National Australia Bank, Westpac, ANZ and AMP offer 'in house' financial advice, and collectively, control more than half of Australia's financial planners. It's no surprise ASIC's review found advisers at these banks favoured financial products that connected to their parent company, with 68% of client's funds invested in 'in house' products as oppose to external products that may have been on the firms list. Why the banks integrated financial advice model is flawed It's hard to believe the banks can keep a straight face and say they can abide by the duty for advisers to act absolutely in the best interest