What is Ethical Financial Advice & Is It Worth It?
Managing your finances can be overwhelming due to the big responsibilities you need to juggle
…boosting your super
…growing your wealth
…protecting your health and wealth with the right insurance plan.
Add to that having to do research on investment options that align with your values and contribute to your preferred social and environmental practices.
But you don’t have to do it alone.
You can reach out to a licenced and experienced Financial Adviser who can give timely advice and develop a financial plan that can simplify your money decisions.
Yes, there are Financial Advisers who can develop a strategy according to your preferences that complies with the highest standard of service and moral obligation to you – the client.
And so in this article, we’ll explore the answers to the question “What is ethical financial advice and is it worth it?”
Everything You Need to Know About Ethically Investing & Managing Your Money
Ethical investments are investments based on an investor’s code of ethics.
Also called responsible investment, ethical investment enables you to support companies creating a positive impact on society and the environment. These companies are involved in sustainable energy, fair labor and trade practices, high ESG performance, and processes free of animal cruelty.
Your fund manager will work with you to create an ethical portfolio that includes investments in industries that address social issues you would like to support.
They will actively seek out ethical funds that align with your values. With more ASX200 companies providing varying levels of ESG disclosure, investment managers can provide you with investment options to ensure a diversified portfolio.
Why is Ethics Important in Financial Advice?
Would you entrust your investments to a financial adviser or fund manager with questionable ethics?
Your super fund is your preparation for your retirement needs – your future. Choosing a responsible fund manager is as important as building an investment portfolio that includes companies with Environmental, Social, and Governance policies.
With finance professionals guided by the Code of Ethics prepared by Financial Adviser Standards and Ethics Authority Ltd, you are assured of ethical financial advice from your investment manager or the business entities they represent.
What are Ethical Issues in Financial Planning?
Conflicts of interest or personal biases may affect your financial advisor’s recommendations. After all, they’re also human with social issues they may want to support or client preferences they would like more to succeed for added financial gain.
However, they know better than to impose their belief and values on their clients. As professionals, they are committed to the success of all their clients, as this demonstrates their competence, diligence, and trustworthiness.
What are Ethical Financial Services?
Ethical financial services aim to invest your money according to your values.
Investing ethically allows you to use the power of your money to help address social and environmental issues.
With the diverse investment market in Australia promoting ESG policies and practices, you can establish your investment portfolio on assets with guaranteed returns based on past performance. At the same time, choose businesses aligned with your values.
Code of Ethics in Financial Management
Financial advisers follow the Financial Planners and Advisers Code of Ethics 2019 developed by the Financial Adviser Standards and Ethics Authority (FASEA) as part of the professional standards for financial advisers.
How to Choose an Ethical Financial Advisor?
Finding the right financial advisor is crucial to your success. You have to trust that your financial advisor advocates for your financial well-being.
Do your research. Find out as much information as you can about your potential financial advisor.
The more you read about them, the more you are likely to have questions about them:
- Are their clients satisfied with their service?
- Did I check legitimate online reviews?
- Are they recommended by a friend or colleague?
- Is it worth your time, effort, and money to find a financial adviser who’s right for you?
The road to financial success is a two-way street. Working with a financial adviser you trust ensures the smooth implementation of financial management and strategy.
Make an appointment as soon as you have a shortlist.
Contact Novo Wealth – Dedicated Ethical Financial Advisor – for More Information on Ethical Financial Planning
Ethical super funds are now an integral part of a bigger superannuation sector in Australia.
Our dedicated ethical financial advisors at Novo Wealth will answer all your questions and guide you through responsible investment.