{"id":31723,"date":"2015-11-24T16:11:17","date_gmt":"2015-11-24T06:11:17","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=31723"},"modified":"2015-11-25T06:57:22","modified_gmt":"2015-11-24T20:57:22","slug":"client-consent-essential-for-better-advice-outcomes","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/11\/24\/client-consent-essential-for-better-advice-outcomes\/","title":{"rendered":"Client Consent Essential for Better Advice Outcomes"},"content":{"rendered":"

Clients need to be kept informed about the financial advice process and to take responsibility for what they are committing to according to a senior financial adviser and award winner.<\/span><\/p>\n

\"2014<\/a>
2014 AFA Adviser of the Year, Eleanor Dartnall<\/figcaption><\/figure>\n

Dartnall Advisers, Principal, Eleanor Dartnall<\/strong> said adopting an advice process in which clients must have a level of informed consent has been critical in avoiding advice and investment mismatches as well as boosting referrals from existing clients to nearly 100%.<\/p>\n

Dartnall, who is the Association of Financial Advisers – 2014 Adviser of the Year, said she had focused on client education since the introduction of the Future of Financial Advice (FoFA) legislation as she believed it had serious omissions in the safe harbour provisions.<\/p>\n

\u201cWhat is totally missing is a requirement for clients to indicate they have understood the advice and have given consent to it. We aim to provide informed consent so a client can accept responsibility for the advice they receive,\u201d Dartnall said as part of her address to a Most Trusted Adviser webinar hosted by the Beddoes Institute last week.<\/p>\n

\u201cWhat is totally missing is a requirement for clients to indicate they have understood the advice and have given consent to it.”<\/h6>\n

As part of this shift Dartnall replaced the risk profiling section of her meetings with education around how different asset classes work in fluid markets, types of investment exposure and diversification and specific issues that may arise in sector and companies within the market.<\/p>\n

\u201cThis takes around one and half hours but it was better than asking people to make choices based on questions they did not understand. Instead of tagging clients as conservative or balanced and matching them to investments they were able to choose what risks they would take with their money,\u201d Dartnall said.<\/p>\n

Aware that Statements of Advice (SoA) were already too large Dartnall also removed all the generic content from SoAs given to clients and focused on advice given to the client only after they had given informed consent.<\/p>\n

This has meant that Dartnall has chosen not to deliver advice online stating it was necessary to have face to face engagement with clients to secure this higher level of understanding.<\/p>\n

\u201cIt can take up to four meetings instead of the two we were doing in the past and the cost remains the same for the client but we have found this engagement works. At present new clients refer us to others at a rate of 90%, while just over a year ago that referral rate was only around 2%,\u201d Dartnall said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Clients need to be kept informed about the financial advice process and to take responsibility for what they are committing to according to a senior financial adviser and award winner.<\/p>\n","protected":false},"author":3,"featured_media":31744,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[270,5],"tags":[4247],"class_list":["post-31723","post","type-post","status-publish","format-standard","has-post-thumbnail","category-remuneration","category-services","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31723","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=31723"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31723\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/31744"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=31723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=31723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=31723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}