Financial Planners are hurting.
The collapse of Timbercorp & Great Southern has hurt Financial Planners. The editor of Asset – The Financial Planning Professional Magazine stated that Professional Investment Services Ltd (PIS) did not throw an end of financial year party as they have missed out on more than $15 million in advance commissions from the sale of the agribusiness managed investment schemes.
Who are we supposed to feel sorry for – the poor financial planners losing commissions from an unviable product or the poor clients who lost their life savings and even more?
We have analysed a number of these tax driven products and never found one to be commercially viable.
Between the commissions paid to financial planners, the high interest rates, the management fees, natural disasters and market conditions – there was always going to be a problem with the lack of profits left for the investors.