Financial planning is really about… suggesting a client see a financial counsellor

Sometimes, you simply won’t be able to help your client. They need a financial counsellor, perhaps to assist them to enter into some form of debt arrangement or even to help them declare bankruptcy.

There are funded financial counselling services throughout Australia. Financial Counselling Australia have a searchable website that will help you locate a counsellor in your area.

The suggestion to see a financial counsellor does not need to be conveyed in a statement of advice (unless there is also some financial product or financial planning advice being provided). A simple email to the client might be the simplest way to go. But we do recommend that you do actually email the client as this documents that you did not provide financial product advice and that you referred the client to a specialist in their area of need.

Adviser tip – here is how you might suggest it

Can you see these paragraphs in your next client communication:

Unfortunately, your financial situation is quite serious and I think you need to see a specialist financial counsellor. These people will be able to assist you to manage your debts and otherwise better organise your financial affairs.   

The nearest counsellor to your home is _________.

The Dover Group