MenuFAAA Principles of Good Professional Practice
Stage 5 - Implementing the advice recommendations
Stage 5 of the financial advice process – Implement the client’s advice recommendations – is where advisers put the agreed plan into action. At this stage, you confirm with the client what’s being implemented, who’s responsible for each part, and make sure you have their consent before moving forward.19
You coordinate with other professionals if needed, handle documentation, and ensure any products or services are selected and secured appropriately. If circumstances change or a recommendation becomes outdated, you reassess before proceeding. The goal is to carry out the plan diligently, transparently, and in the client’s best interest.
The FAAA Principles of Good Professional Practice booklet is also available to download.
Outcomes
1. Agree on implementation responsibilities
- Define who is responsible for each part of the plan — adviser, client, or other professionals.
- Document any changes to the original scope based on client agreement.
2. Meet legal requirements before implementation
- Review to ensure all necessary documentation and authorisations are in place.
3. Avoid implementing expired recommendations
- Be satisfied the client knows how long they have to consider and respond to your recommendations.
- Decline to act on any advice that is no longer current or appropriate.
4. Obtain client’s informed consent
- Be satisfied the client understands your recommendations and the likely benefits and costs of proceeding.
- Get clear approval in writing before implementing any recommendations.
- Do not provide or charge for services without prior consent.
- Where appropriate, offer an ongoing review service.
- Agree the dates for any review activities that form part of the agreement.
- If part of the agreement, define the ad-hoc events which will trigger action and what those actions will be.
- Provide the terms for any ongoing review service in writing.
5. Implement diligently and ethically
- Act promptly and thoroughly on agreed recommendations. Ensure the recommendations remain current and relevant before implementation.
- Ensure the client is aware that the recommendations are time limited and should not be implemented if there have been changes to relevant circumstances.20
- Notify the client in writing if a recommendation is not implemented and explain why.
6. Handle client requested variations in line with your ethical and regulatory obligations, ensuring:
- If a client requests changes that may impact their goals, inform them in writing of the risks and consequences.
- Fully document the reasons for any variation.
- Where the requested changes are a significant departure from the recommendations, consider whether it is necessary to provide an updated statement of record or advice.
- Do not action changes which do not align with the client’s best interests.
7. Maintain a client asset register (if applicable)
- Ensure secure and accessible record-keeping.
The FAAA Principles of Good Professional Practice booklet is also available to download.
19 FPSB Standards 17, 18
20 RG175.96 Note: “…set out a period of time during which the recommended course of action remains current.”
Please note
These principles are intended as a foundation on which advisers can develop their own approach to best practice. This guidance is not exhaustive and is not intended to prescribe how advice must be provided. It outlines principles of good practice and the outcomes they are intended to achieve, rather than specific actions.
Advisers must apply their own professional judgement when using this material, taking into account the needs and circumstances of their clients, relevant legal and regulatory obligations, and any licensee requirements.
