70% of advisers suspicious of code
Fewer than 30% of advisers who responded to a Money Management survey believe they can adhere to the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics as it currently stands.
The survey, completed by more than 150 respondents, revealed that only 26.24% believed that they both understood and could adhere to the code of ethics, with many suggesting that in its current form it placed them at considerable risk.
Asked to explain their negativity about the code, many respondents expressed the view that it had be weighted against their interests.
Typical of the responses was one which stated: “Nobody can adhere to the code. It is deliberately and malevolently designed to be impossible to comply with so that no adviser will stand any chance in the face of any complaint”.
The same respondent said: “You will always at least fail standard 3 because you will always have greater than 0% conflict and the standard is all encompassing. Advisers will be nothing but fodder for consumers, regulators and lawyers”.
Another stated: “Too much ambiguity around the standards. Too much room for FASEA, ASIC and others to apply their own judgement”.
A further respondent wrote: “The code bans 80% of my income and I have haven't been given enough notice to change my business model. What is FASEA thinking?”
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
