Privacy Commissioner says clients control adviser held information
The Office of the Federal Privacy Commissioner (OFPC) has released guidelines on what happens to client data when financial advisers move to another dealer group.
Under the guidelines, released as a series of a Frequently Asked Questions (FAQ), the OFPC says the client is the key factor and advisers must respect the directions of the clients at all times.
The FAQ does not state that financial advisers should have the right to take client information with them in every case, as this will depend on individual dealer group agreements with their advisers but does make it clear clients must have a choice over what is done with their information, in the event of a planner transferring dealer groups.
“Customers wishes must come first when financial advisers consider what to do with clients' personal information when the advisers move from one financial dealer group to another,” Federal Privacy Commissioner Malcolm Crompton says.
According to Crompton clients are to be notified as to what is happening with any personal information and are given full details covering what they can choose to do with their personal information if their adviser moves to another group.
This information should also cover what will happen if the client does not make a clear choice with the OFPC recommending advisers should make at least two attempts to contact clients to check their wishes in relation to personal information when transferring dealer groups.
"In the Office's view, two attempts to contact all clients would demonstrate that a reasonable effort has been made to seek the client's express views," Crompton says.
The guidance as outlined in the FAQ is not law or a ruling, but is designed to assist financial advisers in applying the National Privacy Principles in the Privacy Act.
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
