The Financial Planning Association (FPA) has released a set of practice standards that it said will enshrine the process for delivering quality advice for consumers.
FPA chief executive Jo-Anne Bloch said the practice standards were the first in a series and would embed high levels of technical competence and help consumers to understand the process financial planners use to provide advice, and the level of service they can expect from their planner.
The first four practice standards released for FPA member consultation today are:
1. Quality Client Engagement Standard — promoting clear communication between the client and the financial planner to enhance the understanding of the expectation, rights and obligations of both parties.
2. Quality Client Information Standard — underpinning the collection of sufficient client data to have a reasonable basis for advice.
3. Providing Quality Recommendations Standard — providing guidance and minimum criteria for researching products and standards to ensure clients’ needs and objectives are the principal consideration when providing financial product advice; and
4. Providing Quality Advice Standard — building an appropriate financial plan that responds to the client’s identified needs and objectives and recommends suitable products.
