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Jon-Paul Hale

Part 2: FSLAB & FADC and what it means for us RFAs

Tuesday 23rd of April 2019

From what I have read and discussed, there appear to be some key learnings that we as insurance advisers are going to have to take into account looking forward:

  • Context and environment
  • Professional conduct expectations, practice vs law
  • The measure of suitability.
Also, I appreciate that most of what follows is based on the current AFA standard and not the new code, which we are yet to see.

Professional conduct, what I won't be popular with saying is the FADC's report comments around risk profile as a measure of risk to the insurer is somewhat on target. Underwriters and insurers consider advisers to be the first underwriter of the client, assisting them in ensuring the picture of the client is the picture of the client.

This is why we have the section 10 requirements under insurance law about disclosure to an adviser is disclosure to the insurer.

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