AFA sets out minimum professional practice and ethical standards
Members of the Association of Financial Advisers (AFA) will have to abide by six new principles of professionalism, which are set to form a critical part of the AFA's revised Code of Conduct.
While the publication of the AFA's revised Code of Conduct has been delayed due to regulatory and legislative changes to the Future of Financial Advice (FOFA) reforms, including the removal of the opt-in obligation, the association had decided to release its principles of professionalism.
"The six principles of professionalism set out the minimum professional practice and ethical standards for members of the AFA when providing financial services," the AFA said.
"The central objectives of the code are the achievement of good consumer outcomes and fostering and enhancing the professional reputation of financial advisers."
The six principles:
- Integrity and professional conduct
- Best interests
- Conflicts of interest
- Informed client consent
- Service standards
- Professional expertise
AFA chief executive, Brad Fox, said the association was looking forward to releasing its full code in the coming months, to ensure that member are clear on their behaviours that their professional body and their peers see as essential conduct for professional financial advisers.
"Our members have been responsible for and held to a code for decades but the continued progression of financial advice toward being a recognised profession means the code's relevance and value as a symbol of safety to consumers has increased," he said.
"Early indications are that our members see the principles of practice as appropriate and practical in terms of language and application."
AUTHOR
Nicholas O'Donoghue
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
