Aged care advice included in FASEA standards
Financial advisers who avoid aged care advice risk failing to comply with the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics, according to Aged Care Steps.
Aged Care Steps said three out of the 12 FASEA standards specifically required consideration of the client’s broader long-term interests, and best interest duty failed without this aspect covered.
The firm’s director, Assyat David, said: “Advisers must consider the entirety of a client’s retirement which implicitly needs to take into account not only the early ‘active’ years but also the potential changes to the client’s health and ability over time and the third phase of retirement – the frailty years”.
David noted that, while not all advisers needed to be aged care experts, they needed to have a business solution that matched their business objectives as well as personal skills and expertise.
“Advisers need to build capabilities, confidence and efficiencies to ensure they are able to support clients throughout their frailty years,” she said.
“Standard 2 requires advisers build confidence to actively start conversations with clients about imminent or future care needs for themselves or family members.
“This standard requires a proactive approach to identify needs both now and into the future.”
Recommended for you
Advice licensee WT Financial has announced a 50/50 joint venture with the Australian subsidiary of a US financial advice investor.
Wealth managers will need to reach aggressive short-term goals to grow their assets under management, according to Natixis Investment Managers, but Asia-Pacific has the lowest expectations on their future growth.
With a rising number of licensees opting for bespoke managed accounts, a panel of experts has shared what firms need to know before going down the custom route.
ASIC has banned a Queensland adviser from providing financial services for five years after failing to provide appropriate advice that was in the best interest of his clients.
