Podcast
Questions and Answers
What percentage of financial advisers reported engaging in non-financial counselling and coaching?
What percentage of financial advisers reported engaging in non-financial counselling and coaching?
What is the primary skill that differentiates leading financial advisers in the eyes of clients?
What is the primary skill that differentiates leading financial advisers in the eyes of clients?
How much of their job do financial advisers devote to non-financial issues?
How much of their job do financial advisers devote to non-financial issues?
What is the primary reason clients choose financial advisers?
What is the primary reason clients choose financial advisers?
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What is the name of the organization that merged with the Financial Planning Association of Australia (FPA) to form Financial Advice Association Australia (FAAA) in April 2023?
What is the name of the organization that merged with the Financial Planning Association of Australia (FPA) to form Financial Advice Association Australia (FAAA) in April 2023?
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What percentage of clients rated capabilities such as empathy and understanding client needs as important?
What percentage of clients rated capabilities such as empathy and understanding client needs as important?
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Who conducted a study on financial advisers in the United States?
Who conducted a study on financial advisers in the United States?
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What kind of skills are essential for a financial adviser to have, according to the AFA study?
What kind of skills are essential for a financial adviser to have, according to the AFA study?
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What is the name of the author who mentioned the importance of emotional intelligence for financial advisers?
What is the name of the author who mentioned the importance of emotional intelligence for financial advisers?
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What percentage of financial advisers' job is devoted to non-financial issues, according to the study by Dubofsky and Sussman?
What percentage of financial advisers' job is devoted to non-financial issues, according to the study by Dubofsky and Sussman?
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Study Notes
Emotional Intelligence in Financial Advisers
- 89% of financial advisers in the US have engaged in non-financial counseling and coaching, with 25% of their job devoted to non-financial issues.
- Interpersonal skills and emotional intelligence are key differentiators for leading financial advisers in the eyes of clients.
- Clients rate capabilities such as empathy, listening to and understanding client needs as highly important (82%).
Regulatory Guidance
- The professional standards reforms apply to financial advisers who provide personal advice on relevant financial products to retail clients from 1 January 2019.
- The training standards in RG 146 no longer apply to relevant providers.
- The objects in Chapter 7 of the Corporations Law aim to ensure informed decision making, innovation, professionalism, fairness, and transparency in financial markets.
Code of Ethics
- The Code of Ethics imposes a positive duty to act in a client's best interests, which is not entirely the same as the duty under the Corporations Act.
- Financial advisers must keep confidential all information about the client, and not use or disclose this information for any purpose other than advising the client unless the client has specifically agreed or the law requires.
- Advisers must treat all clients fairly, respectfully, and professionally, and provide professional services to all clients, managing their business to ensure each client has a fair share of their attention, skills, and time.
Confidentiality and Data Protection
- The Financial Advice Association Australia (FAAA) Professional Code mandates that all members protect the confidentiality and integrity of all business and personal information relating to their client's affairs.
- Confidential information can only be disclosed to certain persons or otherwise only with the client's informed and explicit consent.
- Financial advisers must refer to their legal obligations under the Privacy Act 1988 (Cth) and the Australian Privacy Principles to maintain client confidentiality.
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Description
Test your understanding of regulatory guidance in financial advice, including licensing and example statements. Learn about the scope of the licensing regime and more.
