In a year that has barely entered its third month, the FPA has become one of the most talked about associations.
Since the fall of Storm late last year, the FPA has been hauled over the coals by consumers, its members and the media.
And while many of you may find it tiresome to yet again hear the words FPA and Storm in the same sentence, the needle could soon be ready for a new record.
The collapse of the advisory group has been well documented, to say the least.
The relationship between Storm founders the Cassimatises and their lender’s parent, Commonwealth Bank of Australia, has played out like warring neighbours.
A classic battle over responsibility and blame continues to rage as both parties continue to wage war against each other in Australia’s courts.
The reputation of Australia’s margin lending sector has indeed taken a beating.
Investor confidence in the sector has not only been rocked but in many cases shattered.
The ironic twist in all this mess is that the current volatile markets are now a prime environment for margin lending.
It indeed seems cruel and perhaps even opportunistic by some people’s standards, however, new entrants and veterans are ramping up to capture the spoils of the falling markets.
While the market seeks to revive itself, an interesting development the sector may not have banked on is that while the time is right, the mere mention of margin lending or gearing now offers a strange word association: gearing/property; margin loans/storm; storm/collapse.
Perhaps it may be as simple a fix as doubling a marketing budget or tweaking a tagline here or there, though many may find that Average Joe and Average Jane will not be eager to part with their money.
It’s an interesting state of affairs that when a firm suffers a collapse, the chain reaction or domino effect can sometimes be far reaching.
As well as keeping you up-to-date with the fallout from Storm and how the FPA’s investigation is faring, in this week’s IFA we attempt to delve into Australia’s margin lending sector.
We hope you enjoy the read.
