Financial advisors that focus on senior Australians may be on the cusp of a golden era with pronounced financial rewards.
There are a number of reasons that this theory has been stated; such as the baby boomer generation will be retiring in large numbers in the years ahead (which makes up more than 20% of the population), the fact that many baby boomers don’t have financial advice and that the family home will be their biggest asset, making it an important part of their retirement income strategy.
With significant changes to the ethical and educational standards within the financial advisor profession, how advisors exercised their duty of care to investors became a critical issue.
As it stands, financial advisors are now understanding that ethical and professional advice that generates more trust and confidence in their services will attract a premium in a booming market. But for this to happen, there needs to be a commitment to the principle of ‘duty of care’.
Under the ASIC Act and the Corporations Act, financial advisors must:
- Not engage in unconscionable, misleading or deceptive conduct
- Act in the best interest of the client
- Not make false or misleading statements
- Provide services with “due care and skill”
- Provide their services efficiently, fairly and honestly
- Provide appropriate advice to clients that considers their needs, objectives and circumstances
- Supply clients with a variety of important documents, including financial services guides and statements of advice.