AIRC rules against adviser
Financial planners have been warned to take great care in the negotiation of their employment contracts, after a former Wilson Dilworth senior financial planner had a damages claim thrown out by the Australian Industrial Relations Commission (AIRC).
Ross Walker, who worked as a senior financial planner at Wilson Dilworth until his employment was terminated by the Perpetual Trustees-owned dealer group last February, argued his sacking was harsh, unjust and unreasonable and therefore in breach of the Work Place Relations Act.
However, AIRC commissioner Lewin stated Wilson Dilworth did not fall under the jurisdiction of the Act because, despite Walker’s claims to the contrary, he was not an Insurance Industry Award employee.
The AIRC ruled that Wilson did not fall under the award because he did not sell insurance products internally and only recommended his clients consult risk advisers. It was also ruled that the work of a senior financial planner could not fall under the definition of ‘clerical and administration’ duties, tasks which are also covered under the Insurance Industry award.
David Currie, a lawyer with financial planning law firm the Argyle Partnership, says the ruling was in line with accepted principles on the employment conditions for planners.
He warned most financial planners will only be covered by the employment agreement or contract that they privately enter into with their employer.
“This decision highlights the fact that the best time to do anything about the relationship you want with your employer is when you enter into it,” he says.
Recommended for you
Adviser numbers have experienced their largest weekly loss year-to-date this week, doubling that of the previous week.
The number of advisers currently using or planning to use artificial intelligence in their practices has risen substantially to almost three-quarters of firms, according to Adviser Ratings.
Morningstar believes there is still further to run with the potential takeover of Insignia Financial even with original bidder Bain Capital walking away.
Large AFSLs with more than 100 advisers are seeing the largest losses in both adviser and AFSL numbers as individuals seek a smaller, personal vision in their work.
