FASEA left way open for further code adjustments
In one of its last answers to Parliamentary questions before its role was announced as being devolved to Treasury and the Australian Securities and Investments Commission (ASIC), the Financial Adviser Standards and Ethics Authority (FASEA) signaled the possibility of further changes to its code of ethics.
Answering questions on notice to the Senate Economics Committee, FASEA said that while consultations around the code had been completed its work on the code had not and that change was possible.
“Consultation on the draft guide has concluded,” it said. “FASEA will review and give due regard to all stakeholder submissions to determine whether any change to either the code of ethics or the guide is appropriate.
“FASEA will continue to work with stakeholders to implement COE standards that are understood and workable without being prescriptive,” the FASEA answer said.
However, with FASEA’s code development role now having been devolved to Treasury, it is expected that any changes to the code of ethics will be determined by the department once new arrangements are put in place.
While the FASEA board will cease to direct business and policy with respect to the code, it is understood that a number of staff working within the authority have been transferred to a section of Treasury.
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
