Duty of Financial Adviser: Part of Your Lawyer’s Duties
In a case that is still before the Australian courts, the duty of financial adviser will play a pivotal role. A financial professional is required to protect clients’ interests and there are many people who feel their duty as a financial adviser does not extend to these aspects. Whether you are liable to act in the best interests of a client or not, can be up to the court to decide. In short, whether the lawyer’s job of representing a client includes financial advice protection can be decided by the court.
The duty of financial adviser is a complex area of law. Every financial advisor or financial planner is required to complete their Financial Services Licence (FSL) form. The form outlines how they must deal with financial advisers and plan investments. It also defines how advisors are expected to conduct their business. This is not an area where lawyers will easily fit into the circle of knowledge.
For a duty of financial adviser to have some bearing on your case, the fiduciary responsibility will need to be identified in the form. This means that the lawyer must be acting in the best interests of their client. There are situations where this duty of financial adviser may extend beyond the person’s own interests. For example, the duty may require that a financial advisor represent the best interests of all parties involved.
It is also important to note that a duty of financial adviser may not apply to a limited company. In this case, an agent could also be defined as a fiduciary. Lawyers who defend a business dispute may make a distinction between fiduciary and agent in these circumstances. Visit here for more information about what is the average fee for a financial advisor
A fiduciary obligation also extends to a financial adviser who uses the advice for his or her own benefit, where the duty of financial adviser applies. The duty of financial adviser may not apply when an agent has been appointed to represent the best interests of a client. The lawyer representing the client must still remain loyal to the client.
Sometimes lawyers may be confused about whether the duty of financial adviser is limited to their personal assistance or extends to their assistance in the performance of professional duties. It depends on the type of business that they are representing. If a lawyer represents a business that offers financial products such as loans, insurance, investment options, private pensions, and interest-only accounts, then the duty of financial adviser might only cover the personal assistance provided.
In cases where lawyers represent people who own the businesses that offer these products, it is necessary to know what the person is doing with the money. If the business provides a high level of investment advice, there may be no duty of financial adviser on the part of the financial professional.
Another aspect that can affect the duty of a financial adviser is the duty of loyalty. This means that a lawyer cannot use the lawyer’s impartiality to get a person to do something that would benefit them more than the client.