Tuesday, November 21, 2006

Incetive Schemes scrapped

Incentive schemes for financial planners are being scrapped by two large Australian financial planning groups. Genesys Wealth Advisers and Retireinvest announced on 20 November 2006 that their financial planning franchises would no longer reward planners for recommending particular products. The payments, known as rebates, in some cases comprise up to 50 per cent of the income earned by financial dealer groups.

This could be disasterous for some financial planners. At this stage I would steer clear of any financial planning groups in the market so that you can see the full effect in the next report. It has been an area that has been exploited a lot of investors that are not wise in financial dealings. They usually have little money and just follow blindly where theior financial planner told them to put money ( even though it may not be the best spot ).

Time will tell on whether other incentive schemes will be scrapped and whether or not it hurts Genesys Wealth Advisers and Retireinvest.

Good Luck Investing

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