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It IS Financial advice - decisions around pensions/lump sum amounts and beneficiaries are very important at this time. Despite the Royal Commissions blood letting over dead people paying ongoing advice fees it's at this time that an adviser often really delivers value and support.
If AFSA are suggesting that maybe, just maybe the financial advice process is a complex, costly nightmare of suffering for the client and the qualified adviser - join the club. Let's look at ways to make the SYSTEM better rather than just calling for selfish carve outs when life gets ya down.