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Mateo, a provisional relevant provider, summarises two client care standards for his supervisor. His summary says that … (i) under Standard 4, a new client's consent must be given before he starts acting for them, not afterwards. (ii) under Standard 6, even when advice is limited in scope, he must consider how acting on it could affect the client's broader, long-term interests.
Both statements are true. Standard 4 of the Financial Planners and Advisers Code of Ethics 2019 permits acting for a client only with free, prior and informed consent, so consent obtained after he has begun acting is not prior consent. Standard 6 requires the adviser to take into account the broad effects of the client acting on the advice and to actively consider the client's broader, long-term interests and likely circumstances; limiting the scope of the advice does not switch that duty off.
A narrow scope narrows the advice, not the Standard 6 duty to consider its broader effects.
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