Westpac to exit personal advice by September

Westpac has confirmed it is exiting personal advice by salaried and aligned planners by September, this year.

In a document released to the Australian Securities Exchange (ASX) today, the big banking group said it was resetting its wealth strategy and the exit by September was part of its priorities.

The document stated that the BT brand would be retained but that BT Financial Group would no longer be a standalone division with insurance to be integrated into an expanded consumer division and private wealth, platforms and super to be integrated into the expanded business division.

It said that this would result in a reorganisation of executive responsibilities.

The Westpac document said that as part of its move it would be extending its advice referral model over time, including to Viridian Advisory.

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I pity ASIC. Now who will they have to castigate!!!! I pity the next tier of AFSL's. ASIC will need to justify their position and pick a new target.

Basically they will continue to sell their poor performing super but just under General Advice to cut down on compliance, training and paperwork and to avoid the Best Interests Duty which they couldnt comply with under personal advice anyway.

What the RC and FASEA have achieved is removing advisers and the protections/choice/independent analysis provided when getting a solution/product through an adviser and allowed the super/investment/insurers to sell their products directly to the client .

General Advice is a scam and needs to be banned at point of sale for complex investment/insurance products.

I use GA by the way. After giving personal advice for years i have decided to change to the GA model. The client outocmes are exactly the same, it just costs way less to provide GA due to the vastly reduced compliance burden. Unfortunately there will be unscrupulous operators giving bad advice under the GA model and when everything goes wrong the clients they have ripped off will have no recource for compensation due to the nature of general advice.

Ban General Advice at point of sale and level the playing field between all entities operating in the financial services industry.

Westpac thinks by selling its Financial Planning Business will reduce its liability and become someone elses problem. Why would any business want to buy a non compliant financial planning operation that never Acts in clients interest. ASIC you need to do file checks. Many branches have thousands of client files missing. Strongly suggest ASIC look at Sydney region. ASIC if you compare about the public please request Westpac provide you all Sydney files. I guarantee there are thousands of client files missing. Westpac is baking on ASIC will not investigate and by the time problem has been identified it will be to late as there will be a new owner. Shame on you Westpac. Westpac lies and misleads both the public and ASIC with impunity. Daily activities of a Westpac Planner are revenue at all costs, mislead clients to sell in house products even if it is not in a clients interest. Misadvising clients with government super including defined benefit funds into BT super funds even though it made clients lose considerable benefits and made customers worse off and putting clients in BT Super funds that are subject to investment risk even though by risk analysis client does not want any risk, losing guaranteed future payments to be replaced to market linked returns contrary to customer needs and planner does this for the planner can meet their target. I have worked in a toxic Westpac culture and been subject to revenue is the only thing that matters. A management that punishes you of you do not hit your revenue targets. A whistle blower whom does not do anything but protect Westpac and drive out planners who raise any concerns. Mislead insurance clients to meet revenue targets. To all non Westpac Planners there is an opportunity for you by targeting Westpac / BT clients and make a difference and show clients the benefit of true advice in the clients best interest and help a client with their financial future. Restore confidence in Financial Planning do you part and show the community their are excellent financial planners. It is in your hands. ASIC show you care about the victims and not let Westpac escape unpunished by transferring risk to another organisation.

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