Previously, we've addressed aspects of the advice process including Goals and Objectives and File Notes, but with ASIC's recent focus on vertical integration (Report 562), we thought we’d discuss the perennial issue of alternate strategies.Cynics might suggest that alternative strategies are only included to make the advisers’ recommendation appear more considered, less biased and more reasonable. So, why do advisers need to ‘waste time’ thinking about and recording strategies and products that are inferior to what they recommended?Read More
The best interests duty ambitiously requires the provider to "act in the best interests of the client in relation to the advice". The 'safe harbour' steps, are a statutory framework that is a partial, and not terribly effective, defence against apparent failures to act in a client's best interests.
Welcome to Bizarro World.Read More