Speaking at the Australian Securities and Investments Commission (ASIC) Annual Forum in Sydney yesterday, Cooper – who led the federal government’s review of the Australian superannuation system and is now a senior executive at Challenger – said the role played by advisers in the retirement process is often misrepresented.
“We tend to blame advisers a lot of the time for the difficulties around retirement,” he said.
“But really we should be blaming politicians and policymakers and institutions and product providers who have designed the system.
“Poor advisers are on the frontline but the reality is that retirement is complex and expensive.”
Cooper’s comments were in response to ASIC Commissioner Peter Kell, who told the same event that the regulator is concerned about the work of financial advisers in the retirement phase of their clients’ financial lives.
“Far too many advisers are not able to give strategic advice around retirement issues but are too focused on the accumulation phase,” he said.
Bernard Salt of KPMG, who also addressed the forum, said more broadly that the ‘baby boomer’ generation now entering retirement had “unrealistic expectations” of their financial advisers, as well as politicians and society in general.
“These unrealistic expectations are what led to the situation in Greece and Turkey and what will ultimately be the ‘day of reckoning’ in Australia.”
Well said Jeremy and Bernard.
Kell shows off his grass roots grasp (or lack thereof) developed during his years overseas. I wonder if Kell thinks we should bill clients at his hourly rate when we have to spend an hour on the phone speaking to someone at centrelink who has no idea of the rules and regs. I spent a futile couple of hours trying to report a scam to ASIC once. Eventually gave up and watched it go in for a similar amount to Storm (see Reseau) some time later. Good work on the accountability of industry fund trustees, but time to get the boots dirty Mr Kell sir.
Peter kell of ASIC is another individual who will live of the public purse in retirement . I just cant take these people seriously considering that they have not managed to jail one director in the numerous scams that have been perpetrated on advisers and clients alike over the last 10 years . Get out here with the rest of us before shooting of your mouth and try doing a decent days works instead of attending these never ending gabfests
Isn’t that a turn around. When Cooper was with ASIC, he was very anti adviser!
Unfortunately, there are advisers out there who do lack experience, qualifications etc associated with retirement planning and centrelink. The practices themselves-including the instos, must only advise where they are qualified to do so. Internal controls need to be applied. Maybe greed and fees are over riding ethics and professionalism. BUT- for the majority who do a great job speak up and self regulate like any profession or accept an external umpire.