Aged care advice included in FASEA standards
Financial advisers who avoid aged care advice risk failing to comply with the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics, according to Aged Care Steps.
Aged Care Steps said three out of the 12 FASEA standards specifically required consideration of the client’s broader long-term interests, and best interest duty failed without this aspect covered.
The firm’s director, Assyat David, said: “Advisers must consider the entirety of a client’s retirement which implicitly needs to take into account not only the early ‘active’ years but also the potential changes to the client’s health and ability over time and the third phase of retirement – the frailty years”.
David noted that, while not all advisers needed to be aged care experts, they needed to have a business solution that matched their business objectives as well as personal skills and expertise.
“Advisers need to build capabilities, confidence and efficiencies to ensure they are able to support clients throughout their frailty years,” she said.
“Standard 2 requires advisers build confidence to actively start conversations with clients about imminent or future care needs for themselves or family members.
“This standard requires a proactive approach to identify needs both now and into the future.”
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
