Robbie Bennetts
Professional InvestmentServices (PIS) chief executive Robbie Bennetts is calling for submissions on a proposed mandatory client document, which he believes will offer protection to financial advisers by making clients more accountable for the financial outcome of their investment strategies.
The one-page form is to be used in situations where a client insists on having 80 per cent or more of their portfolio allocated to one asset class.
“Let’s agree that if a client has 80 per cent [of their portfolio] in one asset class we have a form which says, ‘Because you have 80 per cent in one asset class you have a very aggressive strategy’,” Bennetts said when addressing an industry forum recently.
“So if the client still pushes this we get them to sign the form.
“If we had a standard form, it would make it easier for FICS [Financial Industry Complaints Service] to determine whether we have done the right thing.”
Bennetts said a different version of the form could also be designed for product providers — which might help combat the escalating number of investors losing large amounts of money in collapsed schemes such as Westpoint, Fincorp and, most recently, Australian Capital Reserve.
“I’m sick and tired of seeing sad stories on television of someone who has lost their life savings, and I think as an industry we need to do something about it,” he said.
“I believe we can fix this by getting together and agreeing to what is a sensible, logical, practical approach.”
Bennetts said he planned to implement the idea within PIS, but was hoping to first work with dealer groups, regulators and associations to develop an industry-wide standard.
He has challenged the industry to respond to his proposal with suggestions for improving the idea.
