Posts tagged Professionalism
Adviser Q&A: Product Replacement

Smarter compliance. Good advice, as Sean Graham explains, demands solutions driven by the clients’ best interests and supported by the adviser’s bona fide consideration of alternatives. Very poor advice, in my experience, often fails to prioritise the clients’ interests. Poor advice, on the hand, often results from a failure to rigorously, efficiently or fairly considering options. The safe harbour steps require advisers to research products they’re recommending as replacements (and those they’re recommending to be replaced) but some advisers still struggle with the requirement. This article answers some of the questions we get from advisers on product replacement.

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The perils of safe harbours

The safe harbour provisions were intended to provide advisers with clarity about how to satisfy their best-interest duty, instead they have compromised it. In practice, checked steps and repeated commitments “to act in the client's best interests” are substituted for any real attempt to act in the clients’ best interests. Licensees, and advisers, obsessively focus on the “safe harbour” provisions, and how to demonstrate how their advice is in the client’s best interests, rather than obsessively focussing on providing advice that is, in fact, in their clients’ best interests. Safety, and better advice, requires advisers to set a new course. 

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Talking the walk: a Christmas gift for financial planners

In the last days of 2013, the Assistant Treasurer, Senator Arthur Sinodinos, announced a number of proposed refinements to the some of the key elements of FOFA - including "opt in", Fee Disclosure Statements and Grandfathering. This article addresses the proposals and their likely impact on consumers, advisers and the advice profession.

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