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Just days after agreeing to a joint policy approach on key issues with the Association of Financial Advisers (AFA), the Financial Planning Association has reasserted its core strategy by launching a renovation of its Code of Professional Practice.
The renovation, the first to the code in 12 years, was described by FPA chief executive Jo-Anne Bloch as ensuring it followed international best practice as determined by the Financial Planning Standards Board.
As well, she said it brought the FPA’s code of ethics, practice standards, definitions and guidance together under one umbrella.
“This is an opportunity for the FPA to set the industry standard for professional financial planning in Australia,” she said. “It demonstrates that FPA members have signed up to high standards of professional practice and conduct.”
Bloch said the code provided much more detailed guidance and clarity for financial planners around their client obligations and was specifically designed to ensure that members could clearly articulate their values to clients.
“Likewise, it will be very helpful for third parties and other key stakeholders to get a very clear understanding of the profession of financial planning and how financial planners engage with their clients,” she said.
According to the FPA summary of the code update, it defines and articulates a best practice framework, provides clarity and confidence to licensees and practitioners on peer expectations of professional conduct and provides a special structure for the six-step financial planning process that differentiates financial planning from product advice.