Joe:I worked briefly for a startup company that tried to promote...

Joe:

I worked briefly for a startup company that tried to promote investment in forestry using an MIS structure. I will not go into the specifics, but basically they could not convince financial planners to market their product as the commissions were too low compared to Great Southern, Timbercorp, FEA etc. The planners deemed that the other products had more stars out of five, or more ticks out of ten - but IMO it really meant they paid 10%-12% direct commissions plus soft commissions and other kick backs, charging that all through to the 'mug' investors.

The problem being that the company I was working with basically sold the MIS tree investment at cost as it was attached to a sawmill that needed the softwood plantation base expanded. They did not exist to profit from the financial product, but to provide raw materials to an Australian sawmill.

The sawmill involved is still there, but the plantations were never expanded because their MIS product could not be sold. At some point in the not too distant future, the mill will likely run out of timber and close.

The MIS model was perfect for this situation and were the MIS investment industry more carefully monitored regulated by ASIC, Institute of Foresters of Australia, Chartered Accountants etc then the debacle that occured could easily have been avoided.

Shame on all involved for ignoring the obvious signs of 'soft' corruption and leaving Australias timber industry in an absolute shermozle, care of Gunns, Timbercorp, Wilmot, FEA, Elders and Great Southern, .

PONZI schemes they became and unfortunately they took out many good operators along the way. There was nothing wrong with the MIS concept or the tree products they grew - but in the end cash is king. It always is.