Its all about Ownership, Licencing and Fees
Ownership, Licencing and Remuneration
When you meet with us at Power2 to make decisions about your financial future you should feel comfortable that we have done our best to remove any bias from the room.
Power2 is a locally owned business with our own Australian Financial Services Licence (AFSL). We have no one telling us what to sell or how to charge.
If, like many firms out there, we worked for someone else or our licence belonged to someone else it only stands to reason that they are also going to be considered during the decision-making process.
Having our own licence and owning our own business means we can provide you with the right advice and avoid the conflicts that come when we have to include another parties’ interests.
Sales vs Advice
Although things are improving it is very true that “old school” financial advice was, and in many cases still is, sales based.
Many advisers either work for, or act as, agents of financial product providers. These can be insurance companies, fund managers, banks and others. The problem here is that the adviser and their licensee or owner have a joint interest in selling products rather than the adviser and their client deciding on strategy.
This arrangement has been the cause of many of the financial disasters we see in the news every day.
Power2 is a locally owned firm with its own AFSL. The owners of the business work in the business and work for you. Because we are not selling a product for, or on behalf of someone else, we can work together towards the best solution for you and your family.
The benefits of our own licence (AFSL)
Product provider supported advisers may only utilise their Licensee’s Approved lists which many times are overloaded with their licensee’s products.
This limits the options for you and quite often increases your costs.
Power2 can select products that suit your strategy from whichever provider suits your needs. Be it managed funds, shares or property, Power2 can examine your goals and objectives and find the best alternative for you at the lowest cost.
Fees and advice
The easiest way to work out who your adviser is really working for is to look at who is paying them.
At Power2 we make sure you know exactly how much we are receiving and where the funds are coming from.
In the case of your investments and our advice Power2 makes sure that we agree on your annual fee upfront every year and then provide you with several options for payment. You can arrange payment direct with us as a flat fee or the funds can come from your investments overtime.
When Power2 provides life Insurance advice, we are not limited in the array of choices available and will take you through the options carefully. Once the right policy is found we then allow you to choose between paying upfront, which is quite often cheaper, or in this instance only, and at your request, accept payment from the provider.
Power2 – Putting your interests first
In summary, the only way we believe a Financial Adviser can truly be working for you and you alone is when the advice, wherever possible, has no financial connection to any other party.
At Power2 we do our best to maintain a transparent, one on one relationship with you by pursuing, wherever possible, three basic tenets; Self Ownership, Self Licencing & Transparent, Non-conflicted Remuneration.