Stewart says there is “a range of changes in the legislation” that alter the information that advisers have to pass on to their clients.

“Margin lending is a regulated product, they are required to write an SoA for their clients, and that’s clearly required in our application for as well,” he says.

“Licensing requirements, training requirements, the legislative change, SoAs, new application forms, advisers need to provide a PDS, unsuitability tests – they’re the key parts.”

Simon says the strategies that planners recommend have changed little as a result of the new rules.

“In fact, it just makes sure that advisers are going back to the basics,” he says.

“So making sure that they truly understand their client’s individual circumstances, their current situation, investment time horizon, the cash flow, risk profile, needs and objectives – so really doing the foundation work better than what they did in the past.

“Other things like instalment gearing, so dollar-cost averaging, a lot of clients are more attracted to that rather than putting all their eggs in at once.

“There hasn’t been any substantial changes to the way a financial adviser works since the margin lending legislation, and even since the global financial crisis.”

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