MenuFAAA Principles of Good Professional Practice
Stage 6 - Reviewing the client's situation
Stage 6 of the financial advice process – Review the client’s situation – is about keeping the plan relevant and on track over time. Properly conceived, this is less a “stage”, and more a description of an ongoing relationship that may exist for a lifetime.21 At this stage, financial advisers continue to work with the client to agree on how and when reviews will happen, and what they’ll cover. The review looks at whether the client’s goals, circumstances, or the regulatory and economic environments have changed since the previous recommendations were implemented, and whether the current plan still makes sense. If needed, advisers update the recommendations and clearly communicate any changes.
The role of the adviser is to ensure the advice stays aligned with the client’s evolving needs and priorities. However ongoing service or periodic reviews should only be provided where there is a need or benefit to the client from doing so. The adviser must clearly communicate the services they will provide, ensuring that these are not vague or difficult to measure objectively, and ensure that these services are then provided.
The FAAA Principles of Good Professional Practice booklet is also available to download.
Outcomes
1. Identify whether the client would benefit from ongoing service
- Only propose where there is a clear benefit or value add.
- Ensure the client fully understands what this will be, and also the risks of not proceeding.
2. Agree on review responsibilities and terms
- Define how and when reviews will occur.
- Define what specific actions the adviser will perform.
- Clarify roles and expectations for both adviser and client.
- If no review service is agreed, clearly outline that no review will be undertaken unless subsequently requested by the client.
3. Conduct the review
- Assess progress toward the client’s goals.
- Identify any changes in the client’s circumstances or objectives.
- Identify any changes in the client’s circumstances and objectives.
- Confirm whether current recommendations are still appropriate.
4. Update recommendations if needed
- Modify or replace recommendations based on new information.
Follow the same process as initial advice (Stage 2–5) when making changes.
5. Communicate outcomes
Provide written confirmation of any updates, continued recommendations, or new advice.
6. Portfolio monitoring (if applicable)
Implement agreed monitoring services diligently.
Ensure transparency around costs and service scope.
The FAAA Principles of Good Professional Practice booklet is also available to download.
21 FPSB Standards 16, 19, 20
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.
