FASEA ethics code to be up for review in 2022

The Financial Advisers Standards and Ethics Authority (FASEA) code of ethics could be due for review before it has even come into force, according to BT.

There were 12 standards within the code of ethics which covered ethical behaviour, client care, quality process and professional commitment while ensuring advisers acted with trustworthiness, honesty, diligence, fairness and competence.

However, consultations around the code had not yet concluded following stakeholder submissions and FASEA had already indicated that further change was possible. 

But FASEA would cease to exist legislatively from 1 January, 2022, and then the standard-making functions of FASEA would be incorporated into Treasury.

In a webinar, BT head of financial literacy and advocacy, Bryan Ashenden, said these standards were due to be reviewed every three years. This meant the review date would coincide with FASEA’s demise in January 2022.

While any further changes, as highlighted by FASEA, would likely be “cosmetic”, there was still potential for changes under a review.

“From a legislative perspective, there is a requirement for the standards to be reviewed at least every three years. They are due to come into force on 1 January, 2022, and by that time, we will have had them in place for three years as it first came out as a legislative instrument in early 2019,” he said.

“So, a review will need to be done in 2022 and this will likely tie into the review on the quality of advice. This will be a chance to enhance the standards as they stand.”