Independent financial advice
The name “Andep” is a contraction of “Analytical Independent” adopted at Andep’s commencement in 1982. Andep was the first Western Australian and third Australian organisation to offer independent hourly fee based investment advice.
When Andep started investment advice was routinely provides at no direct cost to the client and the adviser was remunerated by initial commissions and sometimes trailing commissions, both of which were fixed and could not be changed. There was no capacity for fund managers to rebate fees that would have gone in commission to advisers to clients instead. So Andep passed the commissions through its trust account, back to clients.
In the early days, before “dial down” of commissions, this was the only way clients could benefit from Andep’s independence from commissions.
Partly as a response to Andep and other genuinely independent advisers, some, but far from all, fund managers began, in the late 1980s and early 1990s, to offer commissions that were variable down to zero. Andep’s clients always took maximum advantage of this “dial down” capacity.
Andep also offered a service to people who knew what investments they wanted to make and could see no reason for an adviser to receive a commission for no work or advice. Andep sponsored these investments for those clients. If it were possible for the client to benefit directly from commission freedom, Andep arranged this. Otherwise, it received initial commissions into its trust account and passed them back to the investors. In return for this service, Andep charged a small fee or elected to receive non rebatable trailing commissions. Andep still receives some such commissions. It, therefore, does not meet the current definition of independence under the legislation, being the receipt of no commission.
Andep’s fee structure for new clients, however, does fall within the definition of independence as it is now able to rebate all initial and trailing commissions on investment products and rebates all commission initial or trailing, on insurance products.
It is ironic that Andep, a pioneer of independent advice, is unable to now claim to be independent because of its actions in trying to help clients overcome the tyranny of commissions.
Andep has always be close to or in Perth. It started in Altona Street, West Perth, then in 1990 moved to Parliament Place, West Perth, moving again to Hardy Street South Perth in 1997 and then in 2000 to its current building at 251 Adelaide Terrace Perth. In 2013, Andep moved to floor 8 of the same building and, again in 2o17, moved within the building, this time to the 13th floor.