PIFA helps advisers avoid conflict of interests

PIFA FASEA code of ethics education conflict of interest

10 August 2020
| By Laura Dew |
image
image
expand image

The Profession of Independent Financial Advisers (PIFA) has created a decision tree to help advisers understand the complexities of variable income.

In its guidance paper on the Code of Ethics, the Financial Adviser Standards and Ethics Authority (FASEA) previously warned about how variable income, which includes asset fees, commissions and brokerage fees, can induce advisers ‘to cross that invisible line’.

PIFA’s flowchart would help advisers to understand the in’s and out’s of variable income and prevent any conflict of interest occurring.

“Any business analyst worth her salt will tell you that if there is a risk threatening your practice, before you consider ways to mitigate it you should first ask yourself whether it can be removed altogether – problem solved with zero risk. Many advisers lose a lot of revenue when they change their remuneration structure because there is something missing from their plan.

“What’s missing is ‘The Variable Income Decision Tree’. This flowchart provides practitioners with a roadmap to approach clients and make the transition from variable income to conflict-free remuneration. The benefit is that not only do you get to keep as much revenue on the table, you can actually build on it to make the exercise profitable,” the organisation said.

The flowchart is available for advisers to download.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 21 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 19 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 22 hours ago