Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

80% of advisers say BID improves advice

Best-interests-duty/HUB24/AFA/phil-kewin/

30 January 2019
| By Hannah Wootton |
image
image image
expand image

Four out of five advisers believe that the Best Interests Duty (BID) has been necessary to raise standards across the industry, with the formal structure of the compliance regime improving their confidence in the quality of their advice.

Research by HUB24 also found that while advisers were generally confident of their understanding of the BID, 70 per cent of those surveyed said that they “definitely” or “may” need further training or information.

Association of Financial Advisers (AFA) chief executive, Phil Kewin, said that this showed that the BID was arguably the most important obligation for advisers. He called for more guidance on it for planners, as “ultimately an increased awareness of the BID … will result in improved outcomes for the consumers of financial advice”.

The research also looked at product selection, with the most significant consideration from planners being whether a product matches the client’s assessed risk tolerance, or whether the product was better or had more relevant features than others. Cost was also a factor.

When it came to platforms specifically, features also outranked cost in leading advisers’ choices. Interestingly, whether a platform could help add value for clients through active tac management of investment portfolios was either “extremely important” or “somewhat important” for 89 per cent of advisers.

The research was based on a survey of over 300 advisers on how they had implemented the BID in their business over the last five years and how it had affected the provision of advice to clients.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 3 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 5 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 4 days ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

2 days 4 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND