{"id":898,"date":"2015-09-11T09:22:12","date_gmt":"2015-09-10T23:52:12","guid":{"rendered":"https:\/\/fwgs.net.au\/?p=898"},"modified":"2015-09-15T11:48:50","modified_gmt":"2015-09-15T02:18:50","slug":"fos-top-10-tips-for-accountants-giving-financial-advice-part-2-of-3","status":"publish","type":"post","link":"https:\/\/fwgs.net.au\/fos-top-10-tips-for-accountants-giving-financial-advice-part-2-of-3\/","title":{"rendered":"FOS\u2019 top 10 tips for accountants giving financial advice (Part 2 of 3)"},"content":{"rendered":"

This is the second article outlining the Top 10 tips for accountants giving advice after the accounting exemption expires June 30, 2016.<\/strong><\/em><\/h4>\n

4. Explain the risks to clients who choose to act against your advice<\/strong><\/h2>\n

You must be very clear in explaining the risks and documenting that the course of action is against your advice. Explain the risks in language the client understands make a contemporaneous file note and have the client sign it.<\/p>\n

Fwgs solution \u2013 an example of this for accountants is recommending an SMSF and closing down an existing fund that has insurance(s). All clients are given the option of a free twenty minute consultation with an appropriately authorised financial adviser.<\/strong><\/em><\/h4>\n

5. Explain what types of service you are providing<\/strong><\/h2>\n

Clients don’t know the difference between information, general advice, personal advice and execution-only services.<\/p>\n

If you don’t give the appropriate explanations and warnings or you are unclear, then you could be found liable for advice or activities that you had not intended to provide.<\/p>\n

Fwgs <\/strong>solution <\/em>\u2013 Accountants will only be authorised to set up or wind up and discuss income streams.<\/strong><\/em><\/h4>\n

6. Use template forms and documents carefully<\/strong><\/h2>\n

Make sure template forms and documents about strategies, products and risks are appropriate to the client you are advising.<\/p>\n

It is very difficult to convince us that you have selected the right strategies and financial products for a client if the documents contain errors, are missing information or contain copious amounts of irrelevant material.<\/p>\n

You will also have some trouble convincing us that the client understood your documents if they contain pro-forma jargon or complex concepts.<\/p>\n

Tailor documents to your client\u2019s financial literacy. Statements of Advice must be clear, concise and effective.<\/p>\n

Fwgs solution \u2013 Every client has a unique online identifier based on the name of their SMSF. The temptation to template is directly related to the amount of time it takes to produce a SoA. Our web based software captures the information you have already gathered in the Needs Analysis and pre-populates the SoA leaving you to outline the client\u2019s objectives, make your recommendation, conduct a comparison with the existing super funds and add in the costs. Our system is simple, clear and cost effective.<\/strong><\/em><\/h4>\n

Finance Wise Global Securities Pty Ltd has a unique solution for accountants requiring an authority to advise on SMSF\u2019s once the accounting exemption expires please email the team at info@wordpress-784484-2675404.cloudwaysapps.com<\/a> to find out more.<\/p>\n

Alison Maynard, ombudsman, investments and advice, Financial Ombudsman Service Australia<\/em><\/p>\n

Source: SMSF Adviser Sept 9, 2016.<\/em><\/p>\n

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