Practical compliance coaching
Originally published | 2nd October 2017
A lot of advisers I speak with still long for the good old days where advice seemed easier and the compliance burden was less.
Unfortunately, because of the sins of a few, our legislation has had to evolve to protect not only the client, but ourselves.
That’s the nature of a mature society as well, where they can evolve their legislation, and their constitution, to meet the demands of the current day.
Originally published | 10th October 2017
Does the title sound familiar?
In 1962, the Amazing Spider-Man was introduced to the world and after gaining his powers he tried wrestling for money. His selfishness in using his power for himself saw him neglect to stop a burglar who later killed his uncle.
So what has this got to do with Financial Planning?
I see the authorisation of being a financial planner/adviser as providing a great power in being able to help clients achieve their goals. But with that power comes responsibility and I feel lately that our industry isn’t learning from our mistakes.
Originally published | 18th October 2017
“Those who cannot remember the past are condemned to repeat it”.
These words were penned in 1905 by Spanish-American Philosopher, George Santayana.
But as a society, especially in the financial services industry, have we ever really given this aphorism it’s due?
Do you remember doing history at school?
I loved it, and still do. To me, learning about history provided me with the way understanding how our current society was formed.
Do we use the same philosophy in financial planning? I will put my hand up and say I do.
Originally published | 25th January 2018
We’ve recently seen a lot of action from the Regulator in regards to financial planners not meeting their best interest duty. This action has seen enforceable undertakings, additional licence conditions and in some cases, banning orders.
It led an adviser I know to recently say to me that “The Best Interest Duty can never be 100% fulfilled because for every goal or problem there are many solutions possible and no one right approach. And hindsight will always be a factor. And ASIC seems to focus only on fees and so we are doomed if we offer any solution where the fees are higher no matter how good the advice or product is”.
This seems to be a current reaction to any media in regards to this subject.
What was my answer to this adviser?
Originally published | 29th March 2018
Some habits are hard to break.
Being a financial adviser/planner (whichever term you want you use) means you are providing guidance and direction to your clients, not simply taking direction from them and placing products.
This seems to be the case mostly with life insurance advice when it appears that advisers are still uncomfortable in having the discussions with the client.
Originally published | 17/02/2019
It is interesting that over the last couple of weeks I have read the diatribes of advisers who are bemoaning the changes that will come about because of the Royal Commission. It is interesting that we have yet to fully hear from the Australian Financial Services Licensees (AFSL) that have been caught up in so much of the misconduct.
The reason why we haven’t heard from them, in my opinion, is because they don’t care. These AFSLs are vertically integrated so the advice component is not important to them. The only thing important to them is selling products. And this leads to unethical behaviour.
Originally published | 06/03/2019
If you love or have loved comics in the past you will understand the stories of the heroes and the vigilantes.
The heroes are generally those types that come in as soon as trouble happens and save the day whereas the vigilantes are patrolling the streets, generally in the shadows and are ready to pounce on trouble as it happens.
Originally published | 13/03/2019
One of the things that I am constantly discussing with advisers is how to formulate an advice document that meets the obligations of evidencing your recommendations are in the best interest of the client.
Originally published | 19/04/2019
We all know the saying; the definition of insanity is doing the same thing over and over again and expecting different results.
This is what it can be like in compliance teams around the country.
Originally published | 22nd May 2019
We’ve heard the Hippocratic Oath mentioned a million times in medical shows on television. In its simplest form, it is a doctor swearing to uphold specific ethical standards.
The Greek Physician, Hippocrates, who is often called the father of medicine, wrote the original oath between the fifth and third centuries BC.
When you read the English translation of the oath, there are passages that, we as a financial planning industry, should consider.