Advisers told: Avoid conflicts with any other person
How advisers should show they are putting clients’ interests first, or acting in a client’s best interest, has been a contentious issue in the industry. Some have called for clearer guidelines.
But while the new Financial Services Legislation Amendment Bill provides clarity, it has left many unimpressed.
The bill says advisers have a duty to put a client’s interests first.
If they know, or ought reasonably to know, there there is a conflict between the interests of the person to whom advice is being given, and their own interests, or the interests of any other person, “[the adviser] must give priority to [the client’s] interests, including by taking all reasonable steps to ensure that the [adviser’s] own interests or the interests of any other person do not materially influence the advice.”
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