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.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
