Four Corners Last Night

[icyfroth]

...was an excellent show and the reason why I accidently caught the Q&A fracas which followed.

Last night's Four Corners investigated the CBA' financial planning scandal:

Insider Exposed CBA's Financial Planning Scandal

The man at the centre of the Commonwealth Bank financial planning scandal  that sparked a senate inquiry has lashed out at the bank, claiming it never  properly trained him or supervised his activities. 

Don Nguyen, one of eight CBA financial planners banned by the Australian  Securities and Investments Commission from providing financial advice until  2018, claims nobody at the bank ever said to him: “Don, this is too much, don’t  do this.”

Mr Nguyen allegedly forged signatures, overcharged fees and created  unauthorised investment accounts for his customers without their permission. The  bank paid hundreds of his clients more than $20 million in compensation. 

Banking Bad will also examine a case where CBA denied a dying man,  Noel Stevens, a payout on his life insurance policy. In the final months of his  life, Mr Stevens was forced to fight for what was rightfully his. The case  highlights the inherent conflicts of interest in bank tellers and financial  planners earning a commission for selling bank products.

[debra9275]

we did happen to watch a 2nd airing of that 4 corners show late last night.  What a disgrace they are! would not compensate these people for fairly small amounts in comparison to what they're raking in in profits every year.

Paints we were just discussing that 'loosening of regulations last night as we wached the show

I wouldn't go near a financial planner with a 10 foot pole, would rather chat to our personal accountant

[icyfroth]

That sort of expose would certainly put a lot of ppl off financial planners, Deb.

I think a lot of ppl would have put their faith in the CBA because of it's image of being the "Commonwealth" Bank of Australia.

[cherry*135]

Financial planners that work for any banks are not independent. They have a selected lot of products to push/sell, whether they are the best option for a customer or not ( there could be better options for the customers but not ones the bank offers).

A teller in one of our local banks ( small town) was charged recently with fleecing elderly customers. Over a 6mth period she took in total $20 000 in unauthorised withdrawals from their accounts. I was impressed by her friendliness, knowledge and helpfulness when served by her in the past. Stunned she would do that.

[fourandsixpants]

PPPPPFFFFFFfffft!!! am*3. What a schiester that woman was/is....getting paid by a bank to fleece it's customers.

[cherry*135]

Exactly. She hasn't been sentenced yet. The bank repaid those who she stole from.

[the_great_she_elephant]

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@debra9275 wrote:

we did happen to watch a 2nd airing of that 4 corners show late last night.  What a disgrace they are! would not compensate these people for fairly small amounts in comparison to what they're raking in in profits every year.

Paints we were just discussing that 'loosening of regulations last night as we wached the show

I wouldn't go near a financial planner with a 10 foot pole, would rather chat to our personal accountant

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The problem is, if you go to a financial advisor employed by a bank,at least  you know - or should know -  that they are going to be pushing products either owned by that bank or on which the bank - and the advisor - will make a commision (which doesn't, of course, exempt them from the obligation to work in your best interest). If you go to an 'independant' advisor though, how can you know - unless he tells you (haha)   what deals he may have made with the companies whose products he is advocating. Loosening the regulations seems to me a recipe for disaster.

[cherry*135]

Yes, loosening the regulations is unwise, not in the customers interest at all.