Course overview
This course will introduce key ideas derived from behavioural finance and provide critical insights into the implications that behavioural biases have for consumer and adviser behaviour in the context of the development and provision of financial advice that meets adviser fiduciary obligations and client 'best interest' requirements. This course will promote awareness of the need to incorporate behavioural insights into the financial adviser-client relationship, including their impacts on communication in the professional context. Introduction to behavioural finance; specific behaviours and financial planning decisions; client behaviours and engagement; communication and client engagement; applying behavioural insights in financial advice.
Course learning outcomes
- Discuss the differences between traditional and behavioural finance as a basis for determining adviser and client behaviours in the financial planning context.
- Identify the different forms of behavioural biases commonly displayed by clients, and their implications for investment and other aspects of client financial decision making.
- Critically evaluate the role of behavioural insights and client psychology in client engagement and communication, including their implications for meeting adviser fiduciary and client `best interest' requirements in financial advice for a wide variety of client cohorts.
- Produce ethical advice displaying high levels of professional standards tailored to client requirements including client levels of literacy and financial literacy.
- Positively apply behavioural and psychological insights to verbal and non-verbal communication to enhance engagement in dealings with clients and peers.