Financial Planning Essay
1) “If a financial adviser is to give appropriate advice, they require a good knowledge of Corporate Law.” Discuss.
Answer: There are a couple of aspects that require a financial planner to know about corporate law in detail.
Firstly, as financial planners are running a business they have a responsibility to follow and comply with the rules and regulation under Corporations act to ensure that the firms are fulfilling its duties and provides all companies a level playing field. This helps in maintaining honesty and reliability in the Australian Monetary system which gives all business and consumers an assuredness and trust in the way that the business and commercial activities …show more content…
When it comes to financial planning, one size do not fit all. Each advice given to the clients will have the influence of multiple factors like values, history, culture, demographics, standards, legislative issues and various other dynamics that are unique to that person. A financial planner has to ensure that the client along with the firm do not get into any legal issues and that the advice is in line with the rules and regulations issued by the authorities.
2) The Future of Financial Advice reforms (FOFA) of 2011 sought to decrease the incidence of “client disengagement” as well as the incidence of potential “conflicts of interest.”
Discuss why and how the FOFA reforms of 2011 specifically addressed these two issues.
Answer: As discussed by Sandlant, “Four pillars of Consumer protection” was used to address these issues.
Financial Literacy: As a long term plan, ASIC took obligatory steps to literate consumers at all levels by reaching them in schools, universities, workplaces and via communities by providing with access to all the information and tools that they would need to make sound financial decisions. A new website also ensured support and other tactics for consumers to better their financial