{"id":28052,"date":"2014-11-18T14:03:09","date_gmt":"2014-11-18T03:03:09","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=28052"},"modified":"2014-12-03T07:35:15","modified_gmt":"2014-12-02T20:35:15","slug":"lawyer-warns-about-new-record-keeping-requirements","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2014\/11\/18\/lawyer-warns-about-new-record-keeping-requirements\/","title":{"rendered":"Lawyer Warns About New Record Keeping Requirements"},"content":{"rendered":"

New record keeping requirements that relate to the best interests duty may have gone unnoticed by advisers and licensees, one financial services legal expert has warned.<\/span><\/p>\n

<\/p>\n

\"The<\/a>
The Fold Legal’s Sonia Cruz<\/figcaption><\/figure>\n

In September, ASIC issued a class order (CO 14\/923<\/a>) that imposes specific record keeping obligations on licensees in relation to the best interests duty and related obligations. The new obligations, which take effect from 23 March 2015, require financial advice providers to keep detailed records that demonstrate how they have met the best interests duty when providing advice to a retail client.<\/p>\n

According to the Fold Legal’s Senior Compliance Consultant, Sonia Cruz<\/strong>, advisers will be required to keep records of the information they relied upon, the actions they took, the advice they gave to the client and how this was in the best interests of the client. If the adviser relied on the best interests \u2018safe harbour\u2019 criteria to meet their obligations, Ms Cruz said they will also be required to document these steps. Records must be kept for a period of seven years.<\/p>\n

Ms Cruz also emphasised the importance of documenting conflicts of interest.<\/p>\n

\u201cIf the adviser, or anyone associated with them or with their licensee, knew or should have known about a conflict of interest, the information relied on and the actions they took to show that they prioritised the client\u2019s interests over their own interests is also necessary,\u201d she said.<\/p>\n

Advisers need to be taking detailed file notes at all stages of the advice process<\/h6>\n

Ms Cruz warned licensees to start reviewing the way their advisers collect and retain information when advising clients, in preparation for the commencement of the new record keeping obligations.<\/p>\n

\u201cAdvisers and licensees need to be looking at the ways they are using fact finds, customer relationship systems or other information collection documents,\u201d Ms Cruz said. \u201cThey also need to be taking detailed file notes at all stages of the advice process, keeping copies of client records and keeping records of the research used to advise clients.\u201d<\/p>\n

Ms Cruz added that when it comes to paperwork, licensees shouldn\u2019t \u2018set and forget\u2019. \u201cInclude record keeping checks in your adviser monitoring process, if you haven\u2019t already,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"

New record keeping requirements that relate to the best interests duty may have gone unnoticed by advisers and licensees, one financial services legal expert has warned.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-28052","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=28052"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28052\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=28052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=28052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=28052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}