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Does an adviser need to recommend one course of action to a client, or can the adviser propose options?

15 November 2013

reading time:  minutes

An adviser doesn’t need to restrict his or her advice to one course of action. An adviser can recommend options for the client to consider, and make the ultimate decision regarding how they wish to proceed.

In fact, ASIC’s Report 279: Shadow shopping study of retirement advice states that one of the characteristics of “Good quality advice” is that it “presents options (where relevant)”.

There are many aspects relating to financial advice which are decisions that don’t require a great deal of expertise, which clients may be in a better position to decide than an adviser.

For example, is an adviser the best person to make a decision regarding whether a client should choose a 30, 60, or 90 day waiting period for an insurance product? A client is likely to be in a better position to decide how to balance affordability for level of cover.


Tags

financial advice, regulation


About the author 

Sonnie Bailey

When he's not writing erotic, supernatural, mystery novellas, Sonnie provides financial planning services via his business, Fairhaven Wealth (www.fairhavenwealth.co.nz). Fairhaven Wealth provides independent, advice-only, fixed-fee financial planning services. Sonnie is also a “recovering lawyer”: he has specialised in financial services, trusts, and estate planning.

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