Course on conflict of interests
Advisers who are concerned about potential conflicts of interests in their businesses will have access to a new resource, thanks to the launch of a new course by a financial planning law firm.
The Argyle Partnership has developed the course in response to growing unease among advisers over increased consumer and regulatory scrutiny on conflicts of interest in the financial planning industry.
Corporations Law changes due to kick in from January 1, 2005, require advisers and their dealer groups to have in place adequate arrangements to identify conflicts of interest in their businesses. The Financial Planning Association (FPA) is also working on a new set of conflict of interest guidelines that its members will be required to adhere to.
A key focus of the Argyle course will be on commissions received by financial planners.
Argyle partner Peter Bobbin says while the course will not dictate to financial planners that they need to abandon commissions in favour of fee for service, it will be made clear that commissions create the potential for serious conflicts of interest.
“If your business model is highly reliant on up-front commissions, you have to question if that is the best business model going forward,” Bobbin says.
“We are not in a position to direct, but what we want to do is make them understand the ramifications.”
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