let's work some numbers: say there are 200 clients per year for the last 5 years (I'm being conseravtive here as they've been in operation longer than 5 years). Interprac (SEQ) are dealing with 1000 clients who might need to be made whole for innappropriate advice. Lets say each client has been switched out of their existing Superannuation and invested into the new Super, without the proper ethical steps which is what 7.30 report is alluding to. Let's thumb suck a litle here: 1000 clients x $5000 per client charged = $5m this isn't taking into consideration the loss of potential investment returns, if any.
If the above has taken place and corners have been cut, Interprac's insurers could potentially void any claims due to the advice being innapropriate in nature. This would result in Interprac needing to pay out of pocket to compensate the clients.
I haven't even consided clients who have paid say $5pa for multiple years. then the numbers jump even more....
DYOR.
SEQ Price at posting:
42.0¢ Sentiment: None Disclosure: Not Held
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