Mike Reynolds
Mike Reynolds

Director / Adviser


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Almost 40% of all financial advisers are ‘failing’ their clients – what about yours?

A recent report by the Australian Securities and Investments Commission has highlighted an alarming number of Australians who may have purchased an unsuitable life insurance policy, after receiving advice from a commissions-driven financial adviser.

The report stated that nearly 40 per cent of financial advisers surveyed, failed to comply with the regulations surrounding the sale life insurance products, holding monetary reward above the interests of their clients. This meant that the upfront commission based model – a model 82 per cent of the financial planning industry follow – is failing clients.

In the midst of this unsettling news, it’s good to know FMD are in the other 18 per cent; the remainder of professionals who aren’t driven by high upfront commissions. The interests of our advisers are closely aligned with that of our clients and we only recommend the most appropriate insurance product after we review your specific financial situation.

FMD insurance leader and adviser, Nick Stanley, says “At FMD, our advisers comprehensively tailor their advice to best match our client’s needs. Individually, FMD advisers are well trained to carefully consider various insurance policy details and as a group, we are able to draw on years of experience and industry leading product analysis. Most importantly, it’s the value that we place on building long term relationships with our clients, which would be impossible to maintain if we were chasing short term gains, that separates us from the rest.”

How FMD do this

  • We take the time to comprehensively understand each client’s situation, and ensure we carefully document our conversations.

  • Advisers have regular, ongoing insurance product and strategy training.

  • Insurance recommendations are discussed amongst advisers, and advice documents are regularly peer reviewed, to ensure that the best outcomes are achieved for our clients.

  • We have a rigorous insurance product comparison process that ensures if new policies are recommended to replace existing cover that the costs are lower and that the product features and benefits are superior.

  • FMD uses the Hybrid commission structure given our view to building long term client relationships rather than the transactional approach taken by many advisers who favour the upfront commission model.

See what separates our advisers from the rest, and take control of your financial future. Book in for a Free Financial Health Check with us today.


General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977.