The Motley Fool Investor Revolution Comes to Australia

By The Motley Fool, PRNE
Monday, February 14, 2011

LONDON and ALEXANDRIA, Virginia, February 15, 2011 - We're here to tell Australians the truth about the bloated
financial services industry, says The Motley Fool Australia at
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 (
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 (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 www.fool.co.uk

The Motley Fool Australia launched its website -
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 (www.fool.com.au/take-stock/), The
Motley Fool Australia's free regular email and follow tweets @MotleyFoolAu
(twitter.com/#!/themotleyfoolau)

For further information and/or to arrange an interview with
Tom Gardner, please contact the Media Relations team on +61(0)434-914-618 or
email media at fool.com.au.

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