FASEA releases ASIC code submission

17 December 2019

The Financial Adviser Standards and Ethics Authority (FASEA) has released the content of an Australian Securities and Investments Commission (ASIC) submission dealing with the adviser code of ethics including the regulator’s view of the controversial Standard 3.

The ASIC submission was released by FASEA in the context of answering a question on notice during Senate Estimates and reveals that ASIC was urging further guidance around Standard 3, in the form of examples of the kind of conduct that would fall outside the standards and “would best encourage improved behaviour by financial advisers”.

“We query whether ‘and as an independently minded professional’ is a necessary addition to the standard. It appears to mean something different from acting with "personal integrity". Should it be identified in a separate standard?” it said.

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The ASIC submission outlined by FASEA also expressed concern with respect to there being room for differing interpretations as to what conduct is being carried out.

It also stated: "...our reading of the code is that it should apply to relevant providers even when they are dealing with wholesale clients. While, to be a relevant provider, a person must be authorised to give advice to retail clients, relevant providers may also regularly provide advice to wholesale clients. If it is the case that the code is intended to apply to services provided to wholesale clients, we think this would benefit from further clarity in the code.

“Similarly, we understand that the code is intended to apply to relevant providers even when they are providing services other than personal advice (e.g. general advice). While this is implied in some of the standards to an extent, it would be worth making this clear in the code”.

The FASEA answer to the question on notice when live on the Parliamentary website this afternoon after yesterday being deemed “late” and “unanswered”.

FASEA also indicated it was reviewing its ability to make submissions from financial advisers and other respondents to its consultation process publicly available on its website.

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Wholesale, retail, personal, general, 'independently minded professional', 'personal integrity' …… It shouldn't be this hard ……. what a dogs breakfast !!

my head is in the sand, still no tangible guidance so the sand is safe for a while. obviously a PHD in law is not enough to sort out this mess.

What do you expect from a bunch of academics, educators and government flunkies.

Never run a business, don't know what hard work is, think increased productivity is the same as more paperwork and most importantly, salary comes from tax paid by people who actually work for a living.


Its all a complete shambles! The trouble is FASEA and the board all know the code has issues and is not where it needs to be, but they won’t admit it or ask the Government for a extension on code implementation as its all about saving face. A big part of being professional is accountability and taking responsibility. Time to do this FASEA as you are showing your hands as being incompetent hypocrites!

a bomb of shit has gone off in financial planning, this really stinks to high heaven.

somebody give this industry a typhim vaccine

All submissions had to include a note stating whether it could be made public, or if the submitter wished for it to be kept private. Pretty simple. Why are FASEA playing games? Smells like they have something to hide. Keep digging Amanda Stoker

Does anyone know of a Law which has not been challenged? Lawyers have a happy knack of leaving loop holes or making indecipherable Laws . Who benefits? Judges, of course, are kept in work. More Lawyers have to redraft amendments. Its all one financially rewarding circus, (or circle) indeed.
Why not simply require Advisers to be honest and efficient?
If FASE had any common sense they would spend another 20 or 30 years thinking about the CODE before coming to a decision. I suspect a quick decision will be made and it will be a hopelessly flawed one at that.

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