The practice of recommending a fund which the advisor also...

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Universal Exports

214 Posts.

169

19/01/20

22:01

Post #: 42462098
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Originally posted by Ricko5: ↑

I, like alot of people who have bought into this, am furious that we have gotten to this point. On the surface it should have been a good investment and for some time it was. Then ED got their 'snouts into the troughs' and has blown this thing apart. They seem to have just seen the 'easy money' pathways and put a circle of influence around the buying, fixing up and selling of the assets.

Something has seriously gone wrong and they should be held accountable. As a major financial investment company, surely there must be some rules about companies setting up investments that have swung the investment interest in favour of the company and not their invested clients. Was it set up in the usual spirit of these investment types?

Does anyone think that ED management needs investigation by ASIC or whoever to see if there is some recourse for us investors to recoup something / anything?

As said, I think on the surface it should be a good investment.

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The practice of recommending a fund which the advisor also generates fees from has been noted by others, this article really calls it out specifically regarding URF:

https://www.professionalplanner.com.au/2019/06/it-matters-who-else-is-investing-in-your-lic/

And the fees here are pretty egregious:

https://smsfcoach.com.au/2019/06/07/evans-dixon-us-masters-residential-property-fund-urf-under-scruitiny-warnings-were-given-3-years-ago/

It should be a case of caveat emptor but perhaps two of the options would be:

- preventing a financial advisor recommending a product or fund which they generate material other fees from
- forcing advisors to consolidate the holdings of their clients to determine whether they have to lodge substantial shareholder notices and the legal / accounting scrutiny that brings

URF Price at posting: 59.5¢ Sentiment: Sell Disclosure: Not Held
2 Upvote

0 Great analysis

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