Acting in a client’s best interests is something we all want – and expect – from our service providers. It underpins good service, professionalism and ethical behaviour. The interplay between those factors is explored in this article, part of the Ethics Series proudly sponsored by GSFM. According to ASIC, the best interests duty and related obligations are: “…designed to ensure that retail clients receive advice that meets their objectives, financial [...]

The upsurge in listed products continues unabated as the share market bull-run continues. The number of active ETF launches has been especially high, resulting in a commensurate increase in the number of investors – and financial advisers – using listed securities and products in diversified portfolios. This article, proudly sponsored by GSFM, examines some of the ethical issues pertinent to the use of listed investments. Ethics and morals both relate [...]

Since its introduction to the Australian market over 20 years ago, trauma (aka crisis or critical illness) cover has become an important part of the life insurance product universe. Designed to pay a lump sum in the event that the life insured suffers a traumatic illness or injury, the trauma cover claim rate is second only to income protection, reflecting a likelihood of a claimable event that is around 3 [...]

Introduction The multibillion-dollar losses experienced by individual Disability Income Insurance (IDII) contracts over the last few years, and the resultant ‘sticker shock’ level of premium increases needed to shore up IDII books, became one of the largest sustainability threats faced by the life insurance sector in recent memory. The prudential regulator, APRA, was left with little choice but to intervene in the sector, and in late 2019 they wrote to [...]