Support staff face greater scrutiny
Financial planners are not alone in the firing line when it comes to ensuring all contact with clients is above board, according to an industry figure.
Financial planners are not alone in the firing line when it comes to ensuring all contact with clients is above board, according to an industry figure.
Speaking at the FPA conference in Sydney yesterday, Paraplanning Professionals’ national training manager Karen Elliot-Smith said support staff should be aware they may also come under scrutiny in their dealings with clients.
Support staff needed to be aware that, as the first port of call for clients, they had to avoid inadvertently providing misleading information to clients.
“You don’t have to commit an act against somebody and they don’t have to incur a loss for deceptive or misleading conduct to take place,” Elliot-Smith said.
She argued that support staff needed to be wary of even a straightforward tele-phone enquiry from a client. Keeping silent or “winging it” could land their plan-ning firm in hot water from ASIC if the client became disgruntled.
“It’s a breach of conduct if you’ve given the client the impression of something by leaving out information. And if you don’t know, your client will appreciate you not knowing and finding out.”
Only proper authority holders should be signing correspondence to clients and all disclaimers should be approved by solicitors. Support staff should generally steer clear of engaging in any advisory activity which require judgement on their part.
Elliot-Smith told delegates all support staff should be familiar with their dealer’s procedures and compliance manuals as well as the FPA’s code of ethics and rules of professional conduct.
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