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CommonCents response to Royal Commission

Written and accurate as at: Sep 12, 2018 Current Stats & Facts

In recent weeks there has been much media focus on the Banking & Financial Services Royal Commission. Much of the reporting has included heavy criticism of many of the financial institutions with whom we need to work on your behalf.

For the professional financial planner, the revelations arising from the royal commission have been very disappointing and embarrassing for the industry in which we work. For us this disappointment culminated in an announcement last week from the Australian Securities & Investment Commission (ASIC) that they will be taking court action against NAB & MLC. This court action relates to fees charged by NAB & MLC to some of their superannuation members for advice services they didn’t provide. These clients were all invested in either MLC Masterkey Business Super or MLC Masterkey Personal Super.

The purpose of this letter is to reassure you that as a business we have never recommended these products to our clients. At this time, we have one client impacted by this matter and the legal action initiated by ASIC and they are invested in this product as a result of a decision by their employer. An important part of our advice and service to you is to ensure you are invested in the highest quality financial solutions that deliver and represent fair value for money. We would never accept or condone you paying unnecessary fees or paying fees for services you wouldn’t value or benefit from.

We have met with representatives of NAB & MLC and expressed our anger and disappointment at their conduct. This sentiment is also being carried to the other financial institutions that we work with who have also been identified at the Royal Commission. All these financial institutions have been (or soon will be) put on notice by us that their conduct falls well short of our standards. The trust they have abused will take a very long time to restore and, in the meantime, we will be even more diligent and thorough on your behalf.

Please let us know if you have any questions or concerns.

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