The Financial Planning Association (FPA) kicked off its privacy push at the recent National Convention, with the launch of a kit designed to help advisers ensure they meet the provisions of the new regulations.
FPA chief executive Ken Breakspear says the reason that privacy has come to be so highly viewed is that the relationship between financial planners and clients is based around trust and it is consistent that adequate rule on confidentiality are in place.
“If a business has less than $3 million turnover in one year, then they do not need to be in the system but can opt in to comply. However, as privacy will impact most of our members anyway, we have put together this information from a best practice point of view,” Breakspear says.
“All dealer members will need to comply if they take the privacy rules seriously.”
Breakspear urged FPA members to be active and says if they do nothing, it should be remembered the new Privacy Commissioners will have the right to investigate. At the same time, consumers are also more aware of their rights, and the prospect of fines and negative publicity are a reality, doing irreparable harm to their reputation.
The FPA professional standards officer, Susan Shaw, says most planners should already have a system to implement the privacy rules, and should be considering self assessment and finding the gaps in their business.
Breakspear says the most likely problem areas in coming months will be among financial services divisions in larger groups and their ability to share information without gaining consent from clients.
Another area will be the use of an adviser’s records after they have left an organisation or if they are absent due to sick leave or holidays, as well as how long advisers must keep records as evidence they gave sufficient advice.
