‘Safe harbour’ (2) The provider satisfies the duty in subsection (1), if the provider proves that the provider has done each of the following:
(a) identified the objectives, financial situation and needs of the client that were disclosed to the provider by the client through instructions;
(b) identified:
Book a free 15 minute call This email address is being protected from spambots. You need JavaScript enabled to view it. from our work with clients over the past 36 years.
(i) the subject matter of the advice that has been sought by the client (whether explicitly or implicitly); and
(ii) the objectives, financial situation and needs of the client that would reasonably be considered as relevant to advice sought on that subject matter (the client's relevant circumstances );
(c) where it was reasonably apparent that information relating to the client's relevant circumstances was incomplete or inaccurate, made reasonable inquiries to obtain complete and accurate information;
(d) assessed whether the provider has the expertise required to provide the client advice on the subject matter sought and, if not, declined to provide the advice;
(e) if, in considering the subject matter of the advice sought, it would be reasonable to consider recommending a financial product:
(i) conducted a reasonable investigation into the financial products that might achieve those of the objectives and meet those of the needs of the client that would reasonably be considered as relevant to advice on that subject matter; and
(ii) assessed the information gathered in the investigation;
(f) based all judgements in advising the client on the client's relevant circumstances;
(g) taken any other step that, at the time the advice is provided, would reasonably be regarded as being in the best interests of the client, given the client's relevant circumstances .
Note: The matters that must be proved under subsection (2) relate to the subject matter of the advice sought by the client and the circumstances of the client relevant to that subject matter (the client's relevant circumstances). That subject matter and the client's relevant circumstances may be broad or narrow, and so the subsection anticipates that a client may seek scaled advice and that the inquiries made by the provider will be tailored to the advice sought.
Advice given by Australian ADIs--best interests duty satisfied if certain steps are taken
961B (2)(g): Any other steps to champion your client’s interests
An adviser also needs to take any additional steps that would reasonably, and objectively, be regarded as in their client’s best interests. This requirement includes any steps that a person with a reasonable level of expertise in the subject matter would have taken if they had exercised care and objectively assessed their client’s relevant circumstances.
Yes these are the many steps & the process & the law to meet the expectation to provide the advice that you all expect.
Book a free 15 minute call This email address is being protected from spambots. You need JavaScript enabled to view it. from our work with clients over the past 36 years.
So the professionalism & wisdom from 36 years which is a multiple of the 10,000 to master the advice to you for your financial plan today is required for an improved future tomorrow.
John McAuliffe
