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 and prioritized the client’s interests. The ultimate test is whether a reasonable professional would agree their advice met these requirements, and knowing where ASIC stands would help judge what a reasonable professional would do and say.
ASIC is actually pretty quiet on providing advisers with examples of bad advice too. However, Part D of ASIC’s Report 413 Review of Retail Life Insurance Advice includes three examples of poor advice.
One can learn from examples of poor advice too, and we encourage advisers to read these case studies closely to better understand ASIC’s views on what comprises poor advice, and therefore by deduction, what, comprises good advice.
These case studies are reproduced below.