Jane shared a brief history of financial advice in Australia to give context to where we are today — why advice is a process that takes time, skill and experience, and why quality independent advice is worth the cost.

Jane highlighted the relevant rules and tools, and their practical application through case studies, making clear the meaningful difference that advice can make to long-term outcomes for plaintiffs.

Understanding the legal challenges faced by our clients and their lawyers in their journey towards settlement gives us a great appreciation of our role in the broader context.

It makes us better placed to use our specialist financial expertise helping when clients move forward with confidence.

#personalinjury #financial advice #lawyersalliance

It was a great opportunity to ensure that we are up to date with all aspects of our work, including relevant legislative and regulatory changes.

One of the most interesting and relevant sessions was a behavioural expert who explored the ethical and professional risks and challenges in providing financial advice to people who are stressed as a result of a life changing event such as death, disability or injury.

He covered issues such as the reduced window of tolerance, the strong present-focus, loss aversion and inattention to consequences. He included helpful guidance on what to do and what not to do in this context.

He ended by emphasising the incredible value of the long-term relationship with a trusted financial adviser, perhaps similar to that of a doctor, in helping people navigate through the journey of life.

#Personal injury compensation, #Financial advice, #FAAA

The vulnerability of our clients means extra attention is needed to ensure a shared level of understanding about abuse and its impacts, which extend far beyond the receipt of any settlement funds.

The training provided by Sexual Assault Services Victoria was outstanding.

Thanks for Slater & Gordon Lawyers for hosting the day, and for the participation of the other law firms who specialise in this type of work.

Thanks too to the Financial Advice Association of Australia for supporting this initiative.

Enhanced collaboration between the professions can only help to improve client experiences.

 This month the Financial Advice Association Australia (FAAA) and the top accounting bodies have published welcome guidance on the tax deductibility of ongoing financial advice fees, including those relating to analyzing the tax implications of different structures and investments.

 Personal injury lawyers can help their clients enormously by letting them know that financial advice can very often reduce tax to nil, and to the extent that tax is payable ongoing financial advice fees can be tax deductible. 

Aeran provides specialist personal injury compensation financial advice.

The NSW Trustee kindly hosted this free event on Tuesday 8 April 2025 in Sydney, enabling lawyers to hear first hand from the two Supreme Court judges who are now devoted to all NSW settlement approvals for plaintiffs who lack capacity.

The judges were followed by NSW Trustee lawyers who explained the differences between trust and financial management orders, and provided sample wordings to help ensure clarity and consistency.

Jane explained the importance of personal injury lawyers considering all the relevant issues and options prior to settlement, to ensure the best eventual outcome for individual plaintiffs in all their different circumstances.

Thanks to the NSW Trustee and the NSW Committee of the Australian Lawyers Alliance.

This free event will be held in person on Tuesday 8 April 2025 at 19 O’Connell St Sydney CBD or join us online. Register by 7 April by creating a free account on the Australian Lawyers website here.

It will be a fantastic opportunity for lawyers to hear from judges and the NSW Trustee about what needs to be considered when finalising claims involving persons without capacity.

From the technical to the practical, understand what's needed for the settlement approval, the different types of appointments, and what they'll mean for your clients thereafter.

A lovely card just received from J, a client of Aeran’s David Robertson

The session will focus on Ethics and Professionalism, highlighting the crucial role advisers can and do play in driving positive change for all.

This was in line with a regime which provides that the UK discount needs to be reviewed every five years in line with a careful and detailed process involving weighing up the facts and figures and considering the risks and consequences of over and under compensation.

Meanwhile, here in Australia there has been no such government consideration (or care) for 40 years. Forty years!

In 1984 the government in NSW legislated to increase the discount rate applicable to motor vehicle compensation to 5%.

This had the impact of immediately reducing compensation for thousands of injured people, with the worst consequences to be faced by the most seriously injured.

At that time in the early 1980s inflation had reached 11-13% and interest rates 17%.

On 10 May 1984 the relevant Minister stated that provision had been made in the legislation to amend the rate by regulation “In this way the government will be able to ensure that the discount rate maintains a direct relevance with the circumstances of the day”.

This unfair and unreasonably high rate was rapidly adopted in most jurisdictions and for most types of accident compensation around the country and has never been thoroughly reviewed, nor its damaging consequences examined since.

Credit to the Australian Lawyers Alliance whose members have continuously sought to raise this issue with state and territory governments as they have come and gone over the last 40 years.

The injustice remains and is stark, especially when we see first-hand the predicament of Australians injured at home compared with those similarly injured when in the UK.

See: Personal Injury Discount Rate - England and Wales - GOV.UK

See: My 2023 article Ending the discount rate disgrace

Unfortunately, the focus seems to be on making advice cheaper by lowering the standards of those providing advice[2]. Is that really the best way to go?

The cost of legal advice would also go down if the government decided to lower the standards of those providing it - perhaps by doing away with the need for law degrees?

Similarly accounting, dental, electrical and all manner of other professional services would be cheaper if delivered by those with fewer qualifications.

Do people want cheap or free advice, or do they want good quality advice? In my experience, people want advice that they can trust.

In an excellent recent article in Professional Planner magazine, author Robert MC Brown has pointed out that achieving client trust through marketing is one thing, but ensuring trustworthiness is another.[3]

He noted the very positive news, announced in October of 2024 by Financial Advice Association of Australia, that according to the latest Value of Advice Index[4], nine out of ten advised clients believe the benefits of financial advice outweigh the costs.[5]

This good news and accords with my experience. But how well-placed is the average client to make that assessment? How do they know if they are receiving quality advice?

It comes down to the ethics of the person providing the advice.

Financial advisers are subject to the mandatory professional ethical standards set out in the Code of Ethics developed by the Financial Adviser Standards and Ethics Authority. The standards are enforceable under the Corporations Act 2001 (Cth)[6].

These ethical standards, including the imperative to avoid conflicts of interest, not just disclose or manage them are vitally important, indeed essential.

They are the key to ensuring the future of a thriving, growing advice profession, serving more and more Australians in the public interest.

Increasing the quantity of advice accessed Australia-wide is best achieved by ensuring its quality.

[1] https://www.ifa.com.au/news/35044-jones-guarantees-broad-support-for-dbfo-amid-reports-of-industry-fractures

[2] Government unveils comprehensive financial advice reform package | Treasury Ministers

[3] https://www.professionalplanner.com.au/2024/11/dbfo-is-well-intentioned-but-misses-the-point

[4] Amid affordability row, clients say advice worth the cost - Professional Planner

[5] Value of Advice Index shows improvement for advised Australians - Financial Advice Association Australia

[6] CORPORATIONS ACT 2001 - SECT 921E Code of Ethics

The register gives consumers a quick and easy way to check that a person is currently authorised to provide financial advice.

Why does this matter? And what does it take to be a financial adviser?

The Hayne Misconduct in the Banking, Superannuation and Financial Services Industry | Royal Commissions, established in 2017, shone a spotlight on the damage that can be done if those trusted to manage money do not behave responsibly.

The findings led to reforms designed to improve industry standards, including in relation to financial advice.   

Since 1 January 2019, anyone wanting to become a financial adviser must complete an approved relevant bachelor or higher degree (or equivalent qualification), complete a professional year consisting of 1,600 hours of supervised work, pass the financial adviser exam, and meet continuing professional development (40 CPD hours) each year.

In addition to the qualification requirements, advisers must comply with a myriad of financial services laws.

Importantly, financial advisers must also comply with the five core values and twelve high level ethical standards in accordance with the Federal Register of Legislation - Financial Planners and Advisers Code of Ethics 2019.  

The code fosters client trust, professional conduct, and legal compliance in the financial advice profession.

Aeran’s financial advisers, Jane Campbell, Joe Felizzi and David Robertson, take pride the education, training and experience that we bring to bear to assist our valued clients.   

We are proud to work with Simon McKeough, who is in his final subjects of the Graduate Diploma of Financial Planning and has also commenced his Professional Year. Backed by nearly 20 years’ experience working for a private trustee company, we look forward to next year registering him on the Financial Adviser Register.

Independent financial advice is impartial guidance about your money, free from conflicts of interest. It focuses solely on what's best for you.

2. Why does it matter?

You need to know if the advice you are getting is truly in your best interest and is not being influenced by other factors.

3. The Financial Services Royal Commission uncovered problems

In 2018, an inquiry into misconduct in the banking, superannuation, and financial services industry[i], led by Commissioner Hayne found that many people were receiving advice assuming it was given in their best interests and not realising the conflicts of interest at play.

For example, some advisers only recommended their employer's products or were paid based on how much money they put into certain investments.

4. New rules were recommended

In 2019, the Royal Commission recommended that advisers who are not independent should have to explain why in simple terms before giving advice. They should “give to the client a written statement … explaining simply and concisely why the adviser is not independent, impartial and unbiased.”[ii]

5. What makes an advisor truly independent?

Advisers can only qualify as independent if they or their Australian Financial Services Licensee (AFSL) and all representatives:

·       Did not receive insurance commissions (or rebate them back to clients in full)

·       Did not receive any gifts or benefits from product providers

·       Had no restrictions regarding the products they can recommend

·       Did not own, or are not owned by, and did not have any interest in or association with any products providers.[iii]

6. Disclosure is now the law

Since July 1, 2021, financial advisers must tell their individual clients if they are not independent and explain why.

7. Are the new rules working?

It is hard to say if the new rules are working. They only apply to retail clients where the advice is given directly to the client, not via another entity. They don’t apply to ‘wholesale’ clients.

Hopefully there is now more broad awareness of the issues. Though perhaps such disclosures are skimmed over as unimportant fine print.

8. Truly independent advisors are rare

Unfortunately, relatively few Australian financial advisers meet all the criteria for independence, though numbers are slowly growing.

Sadly, many factors are at play in the Australian financial services industry making it difficult for advisers to establish and build “best practice” independent advice businesses.

That said, they are hopefully the way of the future.

9. The gold standard of financial advice

The best type of financial advice comes from businesses with no ties to companies that create financial products. These advisers charge a set fee for their service, just like a doctor or lawyer, rather than a percentage of your investments.

The advice fees you pay deliver ethics and professionalism.

10. Independent advice is valuable

Paying for truly independent advice can save you money in the long run. Independent advisers can recommend the best products from any company, potentially lowering overall fees. You can also be confident that their advice is focused solely on what's best for you.

True peace of mind comes from knowing your adviser is completely dedicated to your best interests.

[i] Misconduct in the Banking, Superannuation and Financial Services Industry | Royal Commissions

[ii] Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Final report, Recommendation 2.2, p.25.

[iii] Corporations Act 2001 (Cth) s.923A.

 A year ago today my beloved husband and co-founder of Aeran, Andrew, suffered an at-home sudden cardiac arrest. Our elder son performed CPR and Andrew was rushed to Royal North Shore Hospital. It was touch and go.

 Thanks to the emergency team led by Professor Rasmussen, Andrew emerged from ICU and started his journey to come home, and then into the care of the amazing Royal Ryde Brain Injury Community Rehabilitation Team.

 Andrew has retained his personality, humour, warmth, interests, and love of all things family.

 Events over the last year have brought home to us not only the importance of family and friends, but also what it feels like to need help navigating complex medical, rehab, legal and financial systems. You really do need to find professionals who understand and really care.

That's why we're so proud of the Aeran team and what we do. 

In the months following Andrew's event, they did not skip a beat. Quality advice was delivered on time every time, with the kindness and care for which we are known. This was possible due to Aeran’s highly skilled and committed practitioners and the culture that Andrew had fostered since we started in 2015.

Andrew and I have so many people to thank for their wonderful support over the last year, but we take this opportunity to mention a few:

Family - Douglas and Lachlan, Nick and Amanda.

My friends - Dawn, Annette, Matthew, Vicki, Ingrid.

Andrew's friends - Alex, Dan, Andrew and Megan.

Every member of the Aeran team, with particular thanks to Joe, Dave and Simon.

Aeran's professional advisers - Chris, Richard, Rebelle and Bob.

Thanks to Craig for Andrew's successful personal insurance claim.

Finally, thanks to Aeran's wonderful clients and their families, who inspire and motivate me and the Aeran team every day.

Personal injury lawyers and those working with injured Australians will be watching closely to see what is said on the issue of substitute financial decision-making.

Substitute financial decision-making refers to the legal process whereby a court or tribunal appoints an individual or entity to make financial decisions on behalf of a person with a disability who is deemed to lack decision-making capacity. In the personal injury context, the appointment may cover the compensation funds only or the whole estate.

The Royal Commission and financial management

The Final Report of the Disability Royal Commission, published on 29 September 2023, in volume 6[ii], considered issues relating to legal and financial capacity, substitute and supported decision-making.

The report included a helpful history of the parens patriae jurisdiction, guardianship and administration laws, and state and territory legal frameworks including courts and tribunals.

It included some welcome (rarely seen) data, including on public and private orders for substitute financial decision-makers.

The report also included descriptions of some people’s experiences of financial administration. Sadly, a recurrent problem mentioned is minimal consultation or communication with the person with disability or their family.

Also highlighted were reports of financial mismanagement and conflicts of interest, involving fees and decisions about financial matters.

The Government taskforce and public consultation

The federal government has established a taskforce[iii] within the Department of Social Services (DSS) to coordinate its response to the recommendations.

In March 2024, the government issued a progress update[iv] , acknowledging the Royal Commission’s role in shining a light on the poor treatment of individuals with disabilities and their exposure of the role government, public and private institutions, and service providers. have played in causing, accepting or overlooking harm and maltreatment.

They noted the DSS had conducted public consultation, including a questionnaire between 28 November and 19 January to better understand stakeholders’ responses and views on the recommendations. Responses to the questionnaire have been analysed and consolidated into a summary report[v].

A notable quote from a questionnaire respondent was:

“Everyone has the right to make decisions that affect their future – some people may just need a little help to do so.[vi]”

Feedback in relation to decision-making included:

· uniform standards for public advocates, guardians and trustees to ‘facilitate the increased trust of the community’

· an initial focus on addressing state and territory legislative frameworks

· making the appointment of guardians and administrators an absolute last resort.

Aeran will continue to engage with these important issues, helping injured people, their families and lawyers to navigate options, while also providing law reform input to the extent possible based on our experience and expertise.

[i] Joint Statement on Australian, State and Territory responses to the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (Disability Royal Commission) | Department of Social Services, Australian Government (dss.gov.au)

[ii] Final Report - Volume 6, Enabling autonomy and access | Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability

[iii] Disability Royal Commission Taskforce | Department of Social Services, Australian Government (dss.gov.au)

[iv] Australian Government Progress Update on the Disability Royal Commission | Department of Social Services, Australian Government (dss.gov.au)

[v] Public Consultation Report | engage.dss.gov.au

[vi] Public consultation report p.10.

Personal injury lawyers meet clients at a traumatic and vulnerable time. They take on the risk and responsibility of seeking justice within imperfect systems. Outcomes are uncertain and emotions run high.

Here at Aeran, we interact with personal injury lawyers every day. We know the pressure they are under and the lengths they go to for their clients.

Our experienced team understand the dynamics at play in personal injury lawyer/client relationships. This helps us when we have the opportunity to guide personal injury clients into their next phase post-settlement.

We know that trust and integrity are vital, given the difficult journey clients have already been on by the time we meet them.

Having and maintaining the right workplace culture at Aeran is as vital for us as it is for law firms.

We continually strive to learn about and implement best practice - so that we can fulfil our mission, which is not only to help personal injury clients and lawyers, but also to create a good place to work.

Thanks to Sue for her excellent presentation. Thanks too to Legalwise for giving Aeran’s Jane Campbell the opportunity to speak at this conference on the topic of personal injury financial advice.

These rules apply to people of all ages, including children.

One of the rules is that the contribution needs to be made within 90 days of the settlement being received.   

Much needs to be done to meet this deadline, including:

• obtaining financial advice

• obtaining a Tax File Number if the person doesn’t already have one

• obtaining certified copies of acceptable identity documents

• arranging certification from two medical practitioners

• obtaining relevant confirmations from the trustees of the superannuation fund prior to making the contribution

• opening a new superannuation pension account

• transferring funds into the account.

If the above steps are not completed and the contribution has not been made within 90 days of receipt of the funds, the opportunity to secure a tax-free superannuation pension may be lost.

This can sometimes result in a client having to pay significant amounts of tax each year, reducing what’s available to meet their needs. 

However, if a very good reason exists as to why the 90-day deadline has not been met, an application may be made to the Commissioner of Taxation to have a new 90-day opportunity.

 Aeran recently assisted a new client to secure such an extension of time.

Our client had been injured and received significant compensation many years ago. The local Public Trustee was appointed by the court to manage the funds. 

The Public Trustee held the client’s funds mainly outside the superannuation environment and the client was paying a significant amount in tax each year, compromising the level or care that was affordable for the client.

The client’s family arranged for the Public Trustee to be removed in favour of a private trustee company who obtained financial advice from Aeran.

Once the private trustee company was appointed, an application was made to the ATO for a private ruling to have a new 90-day deadline, and it was approved.

There was then a significant amount of work involved in liaising with the private trustee, the accountant, and the ATO, however in the end we were successful in contributing the client’s fund into a superannuation pension. 

The client now pays only minimal tax, so there are more funds available to pay for the client’s lifestyle, care and support.