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.
What about the unsavvy clients? How ridiculous that ASIC is hiding information from them.
Polly, for the unsavvy clients to be considered ASIC would have to be considering a ‘client’s best interests’ – let me ask you, how has that gone so far? LIF, 2 year clawback, commission reduction are all punitive against the adviser and have zero to do with helping the client. Why would anyone expect that this relentless attack upon adviser independence would have anything to do with client best interest. I consider myself independent – I have no influence at all from the life companies or fund managers HOWEVER, because I don’t scrub up under ASIC’s arcane, circuitous and nebulous definition of independence I will have men with guns come after me to lock me in a cage for describing myself truthfully to my precious clients. Commission I get is the last thing on my mind when I recommend a product (they’re all much the same com anyway really – what’s it matter?) and product, claims history and experience are the deciding factors for me. No, I’m now a criminal to be describing myself as independent – but that’s what I am. Crazy ASIC, just crazy – shame on you for persecuting small business owners in the deplorable manner. We pay your wages as taxpayers and this is the way you waste your time and our money. Disgusting.
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All of the above mentioned issues are ONLY important to push in the one-tracked minds of life companies (2-year, coms), special interest groups (not proper consumer groups) and, of course, the ‘ol chestnut ASIC. Life would not be half so exciting without these self-interested and destructive contaminants in our system. They have much to answer for in how they’ve harmed our industry. If there was ANY commonsense or belief in ‘Client best Interest’ left there would be a Royal Commission into the way our industry has been gutted of quality advisers (or indeed shortly will be) and how ASIC et al have been able to set up these illegal and anti-competitive laws against advisers.
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LIF contravenes the Corporations Act and if most advisers realized this I think things ‘may’ have panned out differently. ASIC ‘tried it on’ and got away with it because NOBODY, except the wonderful adviser Peter Corrie (Northern Beaches in Sydney), said or tried to do ANYTHING to help rally the troops against this illegal position of ASIC (the organization, not any particular individual). Not worth raising a legal team over, as he tried, as one will NEVER beat the system. These ‘authorities’ should be absolutely ashamed of themselves and I’m talking life companies and organizations like ‘Choice’ magazine. ALL of them have no real idea what client best interest REALLY is – how could they – they wouldn’t know anything about clients or what is important to them, sitting in their white ivory towers all day. They made the mistake of not speaking with real advisers – they only spoke with the FPA and mates . . . no wonder things are the way they are – hopeless all.
Now that you’ve got that out of your system, why not go fishing! Otherwise its going to be a long 2018.
Hahahaha . . . well said Jack! Afraid t’will take longer than a rant or three to get the current authoritarian idiocy out of my system. I’ll keep prattling until some of the gooses like ASIC, FASEA and life company execs sit up and take notice of how stupid and self serving they are being and how they are ALL ruining our once-great industry and throwing ‘Client Best Interest’ under the bus. We can only but try . . . happy 2018!
I love the hypocrisy of CHOICE who have an opt-out clause for people subscribing to their service, yet they have campaigned loudly for the current opt-in process that we now operate under.
From a business that has always serviced our clients strongly upfront and ongoing I don’t really have any problems with opt in.
But those who make the rules like Over Complicate Everything ODwyer, let’s see her sign up to a two year Claw back for her advice and a 2 year opt in.