LESSONS FROM A $60M SWINDLE

Here is a checklist for all investors who seek advice:

• Don’t let your planner move you from a low-fee, solidly performing superannuation fund into a self-managed fund that has no APRA governance.

• Never go into an SMSF unless you understand it and can run the investments and administration.

• Be wary of any extravagant schmoozing by a financial planner, such as expensive restaurants meals or invitations to boxes at sports events.

• Don’t let your planner or anyone at their firm have the authority to sign your investment and banking documents.

• Don’t allow them to transfer funds between accounts because they can move money to their own accounts.

• Always be vigilant about your financial planner’s actions because the more you trust them, the more vulnerable you are to being deceived.

• Always get a copy of all the documents and correspondence. Don’t let the planner keep all the information.

• Don’t trust qualifications listed on websites. These can easily be fudged. • Make sure you can view your investments in real time. Super funds typically give you live updates on the value of your investments. Shares and other listed investments can be viewed online but unlisted property is valued only once or twice a year. Don’t put up with waiting for statements for listed investments that only come out every six months.