Navigating Incomplete or Inaccurate Information in Financial Advice

As financial advisors, we often face situations where we have to provide advice based on incomplete

or inaccurate information. This can be challenging, but there are ways to navigate these situations

and still provide appropriate advice to our clients.

We recently had a scenario posted to us by an adviser.

Advisers Question:

Is it appropriate to include a $330k NCC recommendation and possible Concessional contribution?

for the husband on the proviso that he is selling his investment property in the foreseeable future?

The key question to ask yourself is whether incomplete or inaccurate information prevents you from

from providing appropriate advice?

For example, if you have a conservative estimate of the proceeds from the sale of an investment,

property and the recommended contributions to a superannuation account are within that

estimate, then you may be able to comfortably make the recommendation, despite the incomplete

or inaccurate information.

Another consideration is whether the client is seeking advice on these matters now, or if they are

willing to wait and deal with more pressing issues first. If the client is seeking advice now, you may

be able to make recommendations for contributions, and then address the investment side of things

later. However, this would require a separate, scoped SOA.

It is also important to consider the potential impact of market movements and other factors on the

advice. If the advice is likely to become outdated due to market movements or other factors, then a

second SOA may be required.

Ultimately, the key is to carefully assess the situation and determine whether it is incomplete or

Inaccurate information prevents you from providing appropriate advice. If it does not, then you may

be able to proceed with the recommendations while making sure to document the incomplete or

inaccurate information and provide a warning in the SOA.