Focus on fundamentals at FPA workshops
As the Financial Planning Association's (FPA's) 'Beyond the Shadow Shopper' workshops made their way to Sydney this week, the discussion turned to the need for proper record-keeping, a separation of the needs and goals of clients as well as a renewed debate about providing a limited advice offering to clients.
FPA chief professional officer Deen Sanders told delegates it was the association's fundamental proposition that the best way to end up with good client outcomes was to have a deep understanding of who clients are and to have a clear separation between their needs and their goals.
Sanders made his point following an exercise in which workshop attendees were provided with a client case study (in the form of statement of advice) and asked to identify the good aspects of the advice compared to the poor components.
On the issue of the uncertainty surrounding limited advice under the Future of Financial Advice changes, an audience member said he was refusing to offer the option just in case he found himself in breech of offering advice without adequately considering a client's financial situation.
In response, Alison Maynard, investments, life insurance and superannuation ombudsman for the Financial Ombudsman Service (FOS), said that it was important for financial advisers to "keep file notes on the discussions you're having with your client".
"We (FOS) look at the evidence that is available - usually if you've been keeping good records and documentation about the advice process, those documents will be more persuasive than oral evidence around the transaction," she said.
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