{"id":640,"date":"2015-08-13T11:02:41","date_gmt":"2015-08-13T01:32:41","guid":{"rendered":"https:\/\/fwgs.net.au\/?p=640"},"modified":"2015-08-13T13:01:59","modified_gmt":"2015-08-13T03:31:59","slug":"the-documents-part-3-needs-analysis-introduction","status":"publish","type":"post","link":"https:\/\/fwgs.net.au\/the-documents-part-3-needs-analysis-introduction\/","title":{"rendered":"The Documents Part 3 – Needs Analysis (Introduction)"},"content":{"rendered":"
Under the Future of Financial Advice (FoFA) Reforms, there is a specific requirement under law to act in the best interests of your client when providing personal advice (\u2018the best interests duty\u2019).<\/p>\n
The new requirements have been introduced with the aim to improve the quality of advice and ensure that the advice you give is:<\/p>\n
Prior to the FoFA reforms, responsibility for the advice given by advisers previously rested with the licensee. Under FoFA, each individual adviser (i.e. not the licensee), will be responsible for the advice they give and may face civil or administrative sanctions should they breach their obligations under the law.<\/p>\n
You need to demonstrate<\/strong> that you have acted in your client\u2019s best interests when you give personal advice. To do so you need to demonstrate that you have satisfied each of the following:<\/p>\n When administering the law, ASIC will ask whether a \u2018reasonable advice provider\u2019 would believe that the client is likely to be in a better position if they follow your advice.<\/p>\n Complying with the seven safe harbour steps will assist you demonstrate that you have acted in the client\u2019s best interests under law. The Needs Analysis document demonstrates that an advisor knows their client<\/strong> which satisfies the first three ports of the safe harbor.<\/p>\n Safe Harbour Step 1 is detailed in the next article.<\/p>\n\n
Safe Harbour Steps<\/strong><\/h4>\n
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Other articles in this series<\/h5>\n