In fact I suggest the harm has already been done to many advisers who are spending countless unpaid hours (I would say months) sifting through old historical paperwork to provide evidence of advice, to meet compliance and red tape requirements - of no value to clients or adviser capacity and effectiveness now. The historical paperwork may not reflect the business relationship and trust built with longtime clients and the many phone calls that occur throughout the year that may have not been file-noted many years prior.
The current cost also includes time not spent on existing clients and pressure on financial advisers and their practices which support there own families. Such a blunt tool for the majority innocent advisers who pay the price of the few bad apples and unscrupulous sales practices. They should have been pulled up by their licensees or the many ASIC/AFCA/others organisations through due process.
Also the multimillion dollar resources spent on remediation and lookback programs in the industry now could have been spent on positive efficiency, education and process initiatives going forward. In all of this the clients' interests have not been best served in this practice and advisers have been treated with contempt.
I have worked in many industries over my career and never have I seen such ridiculousdocumentation and tick a box exercises that the client does not understand, nor want or values. 60 page SOAs without a simple summary and CAFs, FF, Risk Assessments, Opt In, OFAs FDSs, BIDs, BPS, ...etc can be so onerous they have lost sight of the client and their needs. Checks and balances are needed of course but this is insanity.
Too much of the blame and onus has been passed down to the advisers dealing with the clients face to face whilst the big organisations and management teams roll out more sticks and bureaucratic processes. If ever there was a time for efficiency, culture and change management it is now but there needs to be parties working together rather than the current litigious and blame culture environment that exists.
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