The Professional ApproachThe generally recognised six-steps of the financial advice process, have been adopted by the Institute of Financial Advisers in New Zealand, and are part of the professional process for Auckland City Brokers Ltd
The Six Step Process
- Establish the client relationship
- Gather data and establish goals
- Identify the present financial situation, potential problems and opportunities
- Develop and recommend strategies to meet the client’s needs and goals
- Implement recommended strategies approved by the client
- Review and revise the strategies and actions on a periodic basis
The Code of Professional Conduct for Authorised Financial Advisers (AFA) underpins the steps in this process, and provides the moral compass or ‘spirit ‘ which advisers are legally bound to follow.
Code Standard 1. Minimum Standards of Ethical Behaviour
An AFA must place the interests of the client first and must act with integrity.
Minimum Standards of Client Care
Code Standard 6 - An AFA must behave professionally in all dealings with a client, and communicate clearly concisely and effectively.
Code Standard 7 - An AFA must ensure each retail client has sufficient information to enable the client to make an informed decision about whether to use the Service provided by the AFA, or to follow his advice,
Code Standard 8 - An AFA must take reasonable steps to ensure that the personalized service is suitable for the client, by making reasonable enquiries about the client’s financial situation, needs, goals and tolerance to risk.
Code Standard 9 - Where AFA provides an investment planning service to a retail client The AFA must provide a written explanation to the client on the basis on which those services are provided and make the client aware of the principal benefits and risks involved in following the advice.
