Ombudsman clarifies adviser servicing obligations

Good Returns reported on the case in early September. The adviser in question had sold products to a New Zealand man in 1993, who then moved to Perth.

In 2011, almost 20 years after the sale, his wife emailed the insurer, wanting to review the plan. She said it listed the financial adviser, but that neither she nor her husband had any contact from him since being in Australia.

IFSO backed the client and said the adviser had not done enough.

Advisers questioned how that meant they should deal with their clients.