Industry launches ‘plain English’ guides for investors
A "plain English" guide on the Statement of Advice (SOA) and a model Financial Services Guide (FSG) have been released by a consortium of industry groups to assist members in communicating with clients.
TheFinancial Planning Association (FPA),Investment and Financial Services Association (IFSA)and National Insurance Brokers Association (NIBA) announced the release of the consumer friendly guide today, which they say will be available for download from each of their websites.
FPA chief executive Ken Breakspear says that the new "plain English" guides will be a tool to assist members of the industry to explain the financial planning process to consumers, in a format that consumers can understand.
The model FSG was consumer tested by the Communication Research Institute of Australia (CRIA), with the organisation’s report finding the new guides are "presented in a clear, concise and effective manner".
Breakspear says these consumer tests showed that a majority of consumers were able to understand the model FSG.
IFSA chief executive Richard Gilbert says that the association is pleased with the test outcomes and hopes the model FSG will be helpful.
“It is in the interests of all providers of financial products and services to ensure that their customers can make fully informed decisions,” he says.
The SOA guide was developed by the combined FPA, IFSA and NIBA Working Party with assistance from legal firm TheArgyle Partnership.
NIBA chief executive Noel Pettersen says brokers have been particularly concerned that in transitioning between regulatory regimes the benefits would still remain for both them and the public.
“The development of such 'consumer friendly' guides assist greatly in achieving this and are therefore welcome and I commend the work of the joint industry working party in achieving such a good result," Pettersen says.
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