Best interests enshrined in common law
Former High Court judge and patron of the SMSF Professionals’ Association of Australia (SPAA), Sir Anthony Mason, has countered suggestions that the Government’s changes to the Future of Financial Advice legislation, particularly changes to the best interests duty, will undermine consumer protections.
Addressing the opening of the SPAA Annual Conference in Brisbane, Mason said that, in fact, client best interests were protected by common law.
He said it was inherent in common law that an adviser contracted to provide advice was compelled to act in the best interests of the client.
Further, Mason warned that any attempt to get around those obligations via clever wording within contracts was destined to fail.
He reinforced the connection between advice and professionalism, stating that those who provided advice were professionals who would act in the best interests of clients, while those who sold product were salesmen.
AUTHOR
Mike Taylor
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