Conceptualizing financial advice in Australia

The impact of business models and external stakeholders on client’s best interest practice

Authors

  • D. W. Richards chool of Accounting, RMIT University
  • E. F. Morton School of Accounting, RMIT University

DOI:

https://doi.org/10.61190/fsr.v28i2.3421

Abstract

Many individuals entrust financial advisors to navigate through important financial decisions, yet extant research and persistent scandals bring the effectiveness of advice into question. In examining the Australian financial advice sector, we determine when financial advice can be provided in a cli- ent’s best interest and formulate a model differentiating types of financial advice and their relation- ship to best interest practice. We extend this model to form an integrated framework considering external stakeholders that encourage, and business models which prevent, best interest practice. Our examination reveals some business models prioritize financial institution interests whilst thwarting external stakeholders encouraging best interest practice.

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Published

2020-06-30

How to Cite

Richards, D. W., & Morton, E. F. (2020). Conceptualizing financial advice in Australia: The impact of business models and external stakeholders on client’s best interest practice. Financial Services Review, 28(2), 133–158. https://doi.org/10.61190/fsr.v28i2.3421

Issue

Vol. 28 No. 2 (2020): Summer 2020

Section

New Original Submission

License

Copyright (c) 2020 Academy of Financial Services

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