Law firm Maurice Blackburn has urged Australian consumers to avoid taking advice from financial planners employed by a bank, with principal John Berrill saying major banking institutions wanted to “keep more of their money in-house”. Berrill, who lead a class action against Commonwealth Financial Planning, said the best way to avoid being a victim of poor financial advice was to avoid bank-aligned planners altogether.
“[Banks] want to keep more of their customers’ money in-house by selling them their own insurance, managed funds, and investment loans,” Berrill said. “An adviser working for a bank is likely to, under considerable explicit or implicit pressure, sell the bank’s own products, which may not be the most appropriate or cheapest.”
Mortgage Choice is a publically listed company meaning it must adhere to strict transparency rules and regulations.