Financial Planners....confusion

Fair point
But hopefully you would work this out

 

Financial planners are required under law to act in your best interests when giving advice. This duty is prescribed in the Corporation Act 2001. They also have many other legal obligations, including relating to their conduct. These obligations ensure retail customers (i.e who are not classified as wholesale/sophisticated investor) are afforded appropriate protections under the law.

These protections prohibits misleading and dishonest conduct. This is just a very brief snapshot of the strict regime that FPs work with. In the event you feel that you have been hard done by a planner- you can seek remediation and resolution of your complaint, and the financial planners licencee remains responsible for this all- Now compare this when you seek advice- from an accountant or any other person who is not authorised to provide advice- They may be disbarred- but would that help you put you in position that you would be if you were provided with a appropriate advice? additional for compensation you may have to go to courts and that process is not cost or time effective.

Additionally -Giving an impression that someone knows everything does not mean they are competent to give that advice and have expertise and up date knowledge. Sometimes this advice is not constrained just to finance- it also touches on something that only legal should do. As an example I was recently informed by an aggrieved party that they were advised by their bookie to get their brokering licence via CAR (Corporate Authorised Representative) by setting up a company for which the party should be the sole director- These sorts of things needs a proper legal advice- the poor the person was given an impression that the company would be responsible and not them as a director!! i wondered if they were aware that company directors are likely to be found responsible for the actions of the company- and because they have elected to become directors they are expected to know and comply their obligations,including for the company and their own (as directors).

Therefore I am of the view that we should always seek advice from people who are accredited to provide it.

 

And as a concluding remark- most successful people even when they themselves are aware of their circumstances and available options, choose to seek professional advice (I understand that's what you had asked). Also FP should be able to explain the value that his advice can add to your situation- you can decide then what you whether you want it or not- ensure to seek advice from someone who hahas passed FASEA tests (set up recently).