Skip to main content
#
A Clear Direction
rss feedour twitterour facebook page linkdin
home
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Thursday, May 19 2011
Reports are being published today relating to a study conducted by an independent market research company commissioned by the Australian Securities & Investments Commission.  ASIC commissioned the study to better understand the personal consequences of investors not being fully compensated and to help inform submissions to the government review into whether a statutory compensation scheme should be introduced in Australia.

The following is taken from Andrew Main's report in The Australian - Move to compensate investors for bad financial advice


Among key findings were that investors who suffered the most had invested all their money, had not diversified or went into debt as part of their investment strategy....

Most investors' losses were associated with an underlying product that was either frozen or collapsed, and the impact of the monetary loss was immediate on investors who did not have a financial buffer. For others, the first six months from when they discovered their loss were critical....

Every single investor in the worst affected category, which usually involved losing their house, reported serious illness following the financial loss.



The key point I took away from the reporting of this study was that  the worst-affected investors covered by the new study were in the following types of scheme:

  • inner city unit developments,
  • mortgage investment schemes,
  • rural managed investment schemes such as forestry or horticulture,
  • structured investment such as hedge funds and infrastructure funds, and
  • investors who geared up against their home equity and took out margin loans to invest in assets which lost value.

My heart goes out to those who have been hurt by dreadful financial advice and I hope that the government can implement a structure to support those who were mislead or deceived.

It is also important that we all learn from the terrible misfortune of others and make sure that we are careful to properly investigate investment options and seek a second or third opinion if there is any doubt.

At A Clear Direction you can be assured that none of these investment options are in our preferred investment portfolio structure.

Regards,

Scott


Posted by: AT 11:48 pm   |  Permalink   |  Email
 
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269
Email: scottk@acleardirection.com.au

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy