I was following a recent Linkedin thread about QROPS and noted the comment of an adviser in New Zealand. He referred to some offshore advisers as ‘’working in the Dark Ages’’.
This was in reference to something I had previously referred to in my goulash blog. Technology and regulation have heralded the time of the investment platforms. So, why are these low cost savings vehicles taking time to take off among offshore financial salespeople?
Is it because offshore advisers are doing what they always did and are stubbornly refusing to change? Is it that the commissions are too good to lose and that transparent charging will force advisers to justify their fees to clients? Would the offer of “ Free Financial Advice” then be seen for what it is?
While reading it, I thought that it would take a miracle to change the industry. But miracles, from what I have read, tend to be one-off isolated incidents that do not change the system.
Hercules and Jesus may have turned their hands to a few miraculous activities. However, the water into wine deal was a one off. Lazarus was raised from the dead, but modern medicine cannot bring people back from the other side. Hercules carrying the world on his shoulders was pretty impressive, but Altas still ended up being lumbered with the job.
The reality is that the occasional miracle is not going to change the system. There has to be a desire from the industry itself to change and pressure from clients to demand transparency.
Surely the offer for “Free Financial Advice” should be consigned to the Dark Ages. If the advice is free, it is free if you do not take the advice . But, if you take the free advice, the costs are hidden and are often of biblical proportions.