S923A changes unlikely to affect ‘savvy’ clients: Mediq
Modern clients are smart enough to look beyond a practice’s branding and identify “higher ownership structures” despite ASIC’s restrictions on the use of terms like ‘independent’ and ‘non-aligned’, according to a Synchron practice.
In July 2017, ASIC clarified that advisers using terms such as “independently-owned”, “non-aligned”, “non-institutionally-owned” or other terms of “like import” must comply with section 923A of the Corporations Act, with those that did not being required to remove such terms from any marketing material by 1 January 2018.
Speaking to ifa, Mediq Financial managing partner Ravi Agarwal said this would not have a huge impact on advisers, however, as modern clients will likely research a practice before getting advice.
“The key is that the consumer is savvy now,” he said.
“Whatever brand you have on the front of the door, even if there’s a little logo in the corner, people will most likely Google you.”
Clients also look for how advisers act and behave, Mr Agarwal said, and this will also impact how clients perceive the advice they receive.
“I think it’s going to come across in their actions irrespective of where they happen to be licensed through if they’re behaving in a way that demonstrates what they’re providing,” he said.
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