Where are your priorities?

Originally published | 16th September 2016

Set out in s961J of the Corporations Act, is a rule that many advisers might gloss over. It is the conflicts priority rule.

This rule is similar in nature to the previous obligation to provide “appropriate advice”. The priority rule expressly requires an advice provider (Financial Adviser) to prioritise the interests of the client if the financial adviser knows, or reasonably ought to know; when they give the advice that there is a conflict between the interests of the client and the interests of:

  • The financial adviser; or
  • The financial adviser’s Australian Financial Services (AFS) licensee.

Your Objectives, should you choose to accept them!

Originally published | 23rd September 2016

What do most compliance managers, or quality assurance managers, question when discussing the quality of advice?

Does the recommended strategy meet the client’s goals?

The invariable discussion is that in the fact-finding stage of advice, you the adviser, must document the client’s goals. These goals must be specific, measurable, achievable, realistic and timely.

Evolution of Legislation

Evolution of Legislation

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.

Ethics in the face of Unethical Behavioural

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.

Compliance culture (Proactive v Reactive)

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.