Call to extend best interests to credit products
Consumer group Choice wants advice around credit products to be subject to the same client best interest duty which applies to holistic advice provided by financial planners.
Choice has used a submission to the Productivity Commission (PC) inquiry into Competition in the Australian Financial System to state its support for increasing the scope of financial advice to include some credit products.
However, it said its support was conditional and that the scope should only be extended if financial advisors were subject to a best interest duty in relation to any advice they gave.
“This would provide consumers with the minimum necessary protections,” the Choice submission said.
It said consumers were unlikely to be aware of any different duty of care requirements for financial advisors providing advice on products captured under the Corporations Act 2001 and credit products so the obligation should be consistent.
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