Numerous independent financial planners sydney in Australia provide
around 2 million Australians with financial services. These services include
buying property, investments, wealth creation, debt management, tax management,
superannuation advices, and retirement management.
These services demand profound sharing of personal financial
data of a person. Therefore, hiring the right reliable advisor is essential. Most
financial advisers are expected to be legally licensed under RG146 of
Australian Financial Services (AFS).
However, a license alone cannot justify the adviser’s
character alone. There are certain duties and responsibilities that are
associated with financial industry by the Australian Government’s Australian
Securities and Investment Commission (ASIC). These regulations also justify the
expected ‘code of conduct’ of financial companies.
General Duties
The general duties of financial services provider are to
deliver honest and unbiased financial services, fairly, and with appropriate
skills. The provider should deliver services with care, diligence, and in the
fair interest of their clients as well as the morality of the financial
services industry.
Specific Duties
1.
Representations and information provided to the
client should always be factually correct.
2.
The information and fact must be provided in
plain and easy-to-understand language.
3.
The language used should be as such that avoids
any uncertainty or confusion.
4.
The advice or information should be appropriate
and adequate in accordance with the conditions of the financial service.
5.
Haste should be avoided. Client should be given
sufficient time to make a thoughtful financial decision.
6.
The client must be provided the Code either
orally or writing. Whatever may the means or format be of information the
language must be clear.
7.
If the format is in print or digital format, the
font size and spacing should be legible, unconfusing, and readable.
8.
All sums, values, charges, fees, remuneration,
or monitory obligations must be mentioned with details. The basis of all
amount, sums, values, charges, fees, remuneration, or monitory obligations that
are not pre-determined must be informed about with calculations adequately
described.
9.
Any conflict of interest between the provider,
client, or representative and a client must be avoided.
1 0.
In case any conflict of interest arises, the
client must be informed at the earliest possible opportunity.
1 1.
All information, records, and material
documentation that regards the client must be kept with due knowledge of
client.
1 2.
The records, material documentation, and
information about the client and rendered financial services should be kept
until 5 years after termination with knowledge of client.
Although, the ASIC has a proper code of conduct for all
Australian financial services, there are certain advisers who still try to
breach it. The most practiced tactics of a dishonest financial advisor are,
1.
Selling dividends
2.
Unsuitable transaction
3.
Withholding recommendation to invest
4.
Unduly trading your account
5.
Emotional manipulation
6.
Lavish offices
7.
Complex strategies
Whom do you complain
about a dishonest financial advisor?
You might currently be dealing with a financial advisor that
does not completely comply to the code of conduct or one who is using one of
these mentioned tactics. In circumstances as such, you might require to
complain about your current advisor replace him/her with a much more reliable
person. However, there might be less clarity regarding whom do you complain or
talk to about it. Here is some help.
1.
You can talk directly to the adviser.
2.
You can complain to the adviser’s
association/company.
3.
You can make a formal complaint through RG165’s
adviser’s internal dispute resolution system.
4.
In case, you find the solution unsatisfactory,
you can proceed with making a complaint to external dispute resolution system.
Two external dispute resolution
schemes approved by ASIC are,
1. Financial Ombudsman Services Limited (FOS)
FOS deals with various financial and credit services as well
as products, which include complaints against banks, credit unions, foreign
exchange dealers, deposit takers, credit providers, mortgage brokers,
general insurers, life insurers, fund managers, financial advisers and
planners, stockbrokers, and superannuation providers.
2. Credits and Investments Ombudsman (CIO)
CIO takes charge of complaints against credit unions,
building societies, non-bank lenders, mortgage and finance brokers, financial
planners, lenders and debt collectors, credit licensees and credit
representatives.
How do you choose a
dependable and honest financial adviser?
There various financial service providers across Sydney,
therefore, you will have a wide choice to choose from – take complete
advantage.
1.
Find a firm that lets you talk to some its
clients.
2.
Choose a local firm so that it is easy for you
to meet them, meet their clients, and have occasional discussions.
3.
Ask about its payment beforehand.
4.
Know about all the services they provide.
5.
Consider knowing your adviser’s pay structure.
6.
Find a firm that maintains adequate
transparency.
7.
Interview probable adviser
