The local paper has reported that Ross Tarrant has closed the financial planning arm of his business.
Ross Tarrant’s business survived the financial crisis – according to quotes attributed to him in the local paper – by taking undisclosed commissions called “marketing allowances” to direct money into Astarra funds.
His business however it appears does not survive his clients having their retirement savings stolen.
The Tarrants website is dead today too.
Australia has a system of privatized social security. The US flirted with such a system too. However this case shows that getting ordinary members of the public to deal with intermediaries (brokers, financial planners etc) can often be a quite one-side affair. The local paper also points to a local (coal) miner who lost $200 thousand in this debacle. He says he would never have invested had he known about the secret commissions. I guess that is why they were secret.