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The Motley Fool Investor Revolution Comes to Australia.

LONDON and ALEXANDRIA, Virginia, February 15, 2011 /PRNewswire/ -- We're here to tell Australians the truth about the bloated financial services industry, says The Motley Fool Australia at http://www.Fool.com.au

One of the most recognisable brand names in the investing world is today opening its doors in Australia.

Founded in the US in 1993 by brothers David and Tom Gardner, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. It is dedicated to building the world's greatest investment community.

When it comes to the financial services industry, The Motley Fool thinks it's high time the Australian public were told the truth about the great rip-off that has been going on for decades.

Like the US, here in Australia, we believe the financial services industry, by and large, offers self-interested, conflicted advice to investors. Not only that, it charges them handsomely for the privilege of their so-called wisdom.

Naturally, The Motley Fool is broadly supportive of the Federal Government's Future of Financial Advice reforms, including a prospective ban on financial advisors taking commissions on products they sell. We do however note the ban is still only prospective at this stage, and is still well over a year away from being implemented. Much can change.

The Three Major Problems

1) Many financial advisors receive a commission from product providers when they advise you to invest in a certain fund. Those juicy commissions form part of the high charges countless financial products charge you. And high charges make an enormous difference to your long-term investing wealth.

2) These charges, the 1%, 2% or in some cases even more, are one of the main reasons why the majority of actively managed funds fail to beat the returns of the index*.

3) Many financial advisors are paid on a commission-only basis. As such, they are highly conflicted salespeople. Put simply, they may sell you the product that pays them the most commission, not necessarily the one that is most suitable for you**.

Investing and managing your own money is not rocket science. But most people seemingly don't have the interest, and don't make the time, to take control of their own money, and therefore their financial destiny.

Of the Motley Fool's launch in Australia, CEO and co-founder Tom Gardner comments:

"When looking internationally, we quickly saw Australia as the perfect market to launch The Motley Fool brand. We see many similarities with the US market, such as a largely unaccountable, bloated, high-charging and under-performing financial services industry. We're here to shake things up, to tell Australians the truth about the industry, and to help them generate long-term wealth by investing in the share market."

Bruce Jackson, Managing Director at Fool.com.au adds:

"The Motley Fool Australia is here to help guide people through the financial maze, so they can get on the road to financial freedom.

"When you invest you want more of the gains to end up in your bank account, rather than in the pockets of your financial advisor.

"The demand for effective and transparent investment advice is growing in Australia. Our mission is simple - you should take control of your own financial destiny, and armed with just a little knowledge, can make better financial decisions."

Tom Gardner is in Australia from Wednesday 16th February 2011 to Thursday 24th February 2011.

The Motley Fool and OptionsXpress are hosting a free Tom Gardner, Live in Sydney event at 6.30pm on Tuesday February 22nd 2011 at the Sheraton on the Park, 161 Elizabeth Street, Sydney. More details are available by clicking here ( http://www.fool.com.au/investing/tom-gardner-live-in-australia/). Please email media@fool.com.au to be included on the guest list.
 The Motley Fool Australia does not currently hold an AFSL.
 All content found on fool.com.au or matters discussed at live
events is
 to be used for general information only, and not made with any
 regard to an individual's objectives, financial situation
 or needs. 


Notes to Editors:

* There is a host of evidence pointing to the underperformance of actively managed funds, both in Australia and the US.

For example, Standard & Poor's Index Versus Active Funds Scorecard: Australia Mid-Year 2010 said "Over the five-year period ending June 30 2010, a majority of active funds across most of the peer groups in this study have failed to beat their respective benchmarks."

Kingsley Fong, a lecturer at the Australian School of Business, says (http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1209) "All academic evidence suggests that, on average, active managers don't outperform the index after fees."

** Of course, not all financial salespeople are unscrupulous rip off merchants. Some try to advise the very best products for their clients, regardless of the commission structures. Some charge a per-hour fee for their services, the only true way to ensure your advisor is free of conflict. The Motley Fool likes these types of advisors.

About The Motley Fool

Founded in the US in 1993 by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.

The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king - without getting their heads lopped off.

Reaching millions of people each month through its website, books, newspaper column, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor.

The Motley Fool established its first international presence in 1998 with the launch of a UK operation at http://www.fool.co.uk

The Motley Fool Australia launched its website - http://www.fool.com.au - in February 2011 and is headed by Bruce Jackson, a native Australian and previously Managing Director of The Motley Fool UK.

Fool.com.au publishes articles covering company results, asset allocation, economic commentary and opinion plus much, much more.

It also hosts a range of educational content, written in plain English that even the most money-phobic of people should be able to understand, with the sole intention of helping people take control of their own money and make better financial decisions.

For a daily dose of Foolish opinion and commentary, readers' can sign up to receive Take Stock (http://www.fool.com.au/take-stock/), The Motley Fool Australia's free regular email and follow tweets @MotleyFoolAu (http://twitter.com/#!/themotleyfoolau)
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Publication:PR Newswire Europe
Article Type:Company overview
Geographic Code:8AUST
Date:Feb 15, 2011
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