AFA to align Principles of Practice with ASIC outline
The Association of Financial Advisers (AFA) has signaled it will be moving to bring its Principles of Practice into line with the broad guidelines issued by the Australian Securities and Investments Commission (ASIC).
AFA chief executive Richard Klipin said the AFA's specially-designated working group would be examining the contents of the consultation paper issued by ASIC this week and working to ensure its Principles of Practice were appropriately aligned.
As well, Klipin said ASIC commissioner Peter Kell would be addressing this weekend's AFA national conference on the Gold Coast and it was likely the questions relating to the regulator's approach to codes of conduct would be addressed.
The AFA's move to become "code-ready" follows on from the Financial Planning Association (FPA) yesterday announcing specific changes to its Code of Professional Practice almost immediately after ASIC released its code-related consultation paper.
The centre-piece of the ASIC consultation paper is regarded as being the manner in which complying codes of conduct will obviate the need for financial planners to adhere to the two-year opt-in requirements contained in the Future of Financial Advice (FOFA) changes.
The scenarios outlined by ASIC in its consultation paper suggest codes of conduct will need to require planners to contact clients at least as often as would be the case under opt-in.
The Federal Opposition has declared it will repeal the opt-in requirements in the event it is elected to office at the next Federal Election.
AUTHOR
Staff Writer
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
Minister for Financial Services, Stephen Jones, has said he did not expect backlash to changes around advice fee deduction and believes the second tranche will have greater impact, committing to enact it by May 2025.
