The Financial Planning Association (FPA) has announced changes to its Code of Professional Practice in order to bring it in line with the Australian Securities and Investment Commission's (ASIC's) Consultation Paper 191, released today.
CP 191 outlines how Regulatory Guide 183 will be amended in order for the regulator to give its approval to codes of conduct that will obviate the opt-in requirement in the Future of Financial Advice (FOFA) legislation.
The new FPA Code will also be updated to reflect changes in the FOFA legislation in regards to opt-in, the 'best interests' duty, scaled advice and conflicted remuneration, according to the FPA.
The FPA Code was launched in its current form in 2009, according to a statement from the industry body.
FPA general manager for policy and standards Dante De Gori said it made sense to "evolve the Code to take into account a changing environment".
"The FPA will be providing a separate full submission, including member feedback, in response to the ASIC consultation paper," he said.
"We are confident that the changes we have proposed in our Code of Professional Practice consultation are consistent with, and meet the requirement of, the proposals in the ASIC RG183 paper," said De Gori.
Consultation on the FPA Code will be open until 30 November.
The FPA Board is expected to approve the final Code of Professional Practice early in the new year, after which the Code will be submitted to ASIC for approval, according to a statement by the FPA.
"The modifications we are proposing will ensure that the Code is the full solution for financial planners and their clients, while standing the test of time long after the FOFA reforms are a distant memory," said De Gori.
The FPA consulation paper is available here.
