Most personal injury clients would benefit from some financial information or advice post-settlement. You want to be able to guide them in the right direction.
In the past, referring your client to their bank was thought of as the safe option, and they were assumed to be doing the right thing by their clients.
But banks, insurance companies, large financial institutions, and financial advisers all came under the spotlight in the 2018 Royal Commission into Misconduct in the Financial Services Industry.
Justice Hayne found conflicts of interest were rife yet hidden by a combination of expensive marketing and unnecessary complexity.
One of his recommendations was to make conflicts more obvious by requiring advisers who are not independent to clearly state this in their documents.
So, who can you trust to look after your client when they receive a personal injury settlement? How can you guide them to safety?
Most financial advisers and trustees who specialise in personal injury will be happy to speak with your client at no cost.
In a quick chat over the phone, they can provide some valuable information. They can also identify if there are some good strategies available to help your client – particularly in relation to tax, Centrelink, super, investment costs and risks.
Protecting your client can be as simple as:
giving them a couple of names and contact details of those you know who are experienced in personal injury financial advice
encouraging them to get a written quote for advice before proceeding
letting them know that there are some financial opportunities that are only available with personal injury settlement money and some of these have time limits
reminding them of any preclusion period
reminding them of the importance of making good decisions.
Your clients count on you and enabling access to quality information will make a huge difference to your client’s future.