One of our long-standing clients of over 20 years rang recently and made the following remark: “one of the things I have always liked and appreciated from you is that you explain things rationally and simply. But you just sent me what I thought was a straight forward re-balancing of my portfolio……..and the report was 15 pages long and 95% of it seemed like nothing to do with the re-balancing issue.”
This is the new world of regulatory compliance for us and the whole financial sector.
Politicians and regulators are introducing what they believe is good policy to address some significant problems from the past. What we are finding is that the “devil in the detail” is making many simple things very complicated.
In simple terms every time we provide advice (even simple advice) we now need to take extra steps such as:
- Reviewing and re-affirming previous advice
- Confirming advice, you requested
- Confirming the areas of advice not requested.
- Getting a new Fact Find signed by you before each advice report
- Re-stating previously agreed services and fees even if these are not changing
- Providing you with another copy of our Financial Services Guide
We don’t think the policymakers would have realised that their worthwhile objectives of consumer protection would have resulted in this level of administrative and compliance complexity.
Those who are now complaining about banks not lending enough to businesses and making home loan applications incredibly complicated and time-consuming, were perhaps (prior to the Royal Commission) complaining the banks were lending too easily. Sometimes we have to be careful what we ask for!
Anyway, it is what it is. You will need to put up with the more complicated documentation, and in some cases pay more for the extra work needed to deliver it. We will need to continue to meet our legal and regulatory compliance obligations and continue to find more and more efficient ways to deliver it.
And together……..we will get the results you need.
Axios Financial Solutions are a team of respected and highly regarded financial planners with offices on St Kilda Rd Melbourne. Axios helps their clients meet their desired outcomes by providing tailored financial services, strategies, advice and solutions. You can contact them at firstname.lastname@example.org or (03) 9869 5555.
Axios Financial Solutions Pty Ltd (ACN 007 299 014), is an Authorised Representative of Charter Financial Planning Ltd, Australian Financial Services Licensee 234665
Please note that the information in this article is of a general nature only and has not taken into consideration your individual circumstances. Should you wish to discuss your personal circumstances please call us on 03 9869 5555 or email email@example.com.
Level 3 The Metropolis
480 St Kilda Road
Melbourne Vic 3004