ASIC is notoriously quiet in providing advisers with examples of good financial planning advice. This is a pity, because ASIC examples of good financial planning advice would help create a benchmark for advisers; a minimum standard they had to meet to ensure their advice was in the client’s best interests, was appropriate to the client […]
ASIC has expressed concerns regarding certain strategies involving SMSFs borrowing to buy residential property. The concerns focus on the appropriateness of the advice to the individual client’s circumstances and, in effect, whether the strategy is in the client’s best interests. All SOAs have to be approved by Dover’s compliance team and MLA Lawyers before they […]
Advisers will be aware Dover discourages risk analysis questionnaires. Our thoughts are detailed in our Friday Reflection dated 23 December 2016, which you can read here: The Pitfalls of Risk Analysis Questionnaires. You should read this Friday Reflection before you read this practice note. State the facts: clear, concise and effective Dover discourages risk analysis questionnaires […]
Advisers often recommend clients retaining a minimal balance, say $10,000, in an old super fund when transferring benefits to a new super fund. The purpose of retaining this minimal balance is to retain the benefits of life, TPD and risk insurance in the old fund. For example, a client may have $400,000 with an industry fund, […]
A perennial problem involves clients insisting their personal assets such as cars, furniture, white goods, favorite CDs from the seventies, and so on, are assets for financial planning purposes and should be included in the client’s summary of financial position. The client’s preferred position may look like this: Table summarising financial position Home $600,000 Super […]
Most financial planners were shocked to learn about Comminsure’s claims management strategies. These have been well chronicled, in particular by Adele Ferguson and others from the “Money for Nothing” expose, which featured on the ABC’s 7.30 Report, and elsewhere, in March 2016. This prompted Dover to introduce extra training for advisers to alert them to the […]
Dover’s practice notes are intended to help advisers understand what comprises good advice. Sometimes the best way to understand what comprises good advice is to look at an example of poor advice, and consider what should have been done if the advice was to be truly in the client’s best interests. To be in the […]
Disclaimer: This is a Dover Practice Note and is intended to be for information only. While it seeks to provide practical assistance and explanation, please note the guidance and examples in this Practice Note do not constitute legal advice.