Fortnum cuts ties with ANZ

CBA whistleblower and former financial planner Jeff Morris said developments at Fortnum and Ethical Financial were the start of a trend against the “fatally flawed”, vertically integrated model, whereby product manufacturers seek to control financial advice businesses in order to use them as a sales channel. “This trend may be set to continue as more and more advisers realise that vertical integration is the root of all evil in this industry and recognise that financial planning will never make the transition from an industry to a true profession until this fundamental conflict of interest is removed,” he warned.

It comes as the debate on vertical integration is set to heat up after the Commonwealth Bank financial planning scandal exposed flaws in the model and the Murray inquiry moves towards a final recommendation on whether banks should be allowed to own the financial planners who sell the products the banks manufacture.

Read more here: SMH

    

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