IFSA revises codes

The Investment and Financial Services Association (IFSA) has released a substantially revised version of its industry standards, starting with its code of ethics and code of conduct.

IFSA chief executive officer Richard Gilbert said reviewing industry standards is a way the association seeks to help companies “raise the bar” when it comes to complying with a regulatory framework.

“IFSA’s standards complement the existing regulatory structure. They help companies interpret their obligations and, in many cases, raise the bar, ensuring that member companies develop processes and products that provide investors with a quality assurance that goes beyond the baseline of the legislative and regulatory framework,” Gilbert said.

“The substantially reviewed standard that we are releasing today is Standard Number One, Industry Code of Ethics and Conduct (the code), which is essentially the bedrock upon which a common set of values,

shared by IFSA members, is based.

“The code sets out ethical principles to guide decision-making and specifies rules regarding conduct that outlines what investors can expect when dealing with an IFSA member. Our members must ensure that client and investor interests are paramount in all decisions and transactions,” he said.

Gilbert said the code also supports the use of ‘in confidence’ or ‘whistleblower’ reporting methods to help safeguard against instances of inappropriate practice within member organisations.

“The code was developed almost a decade ago and was formally issued in 1999, with another review in 2001. The newly revised code will take effect on July 1, 2007, and is scheduled for further review in mid-2009.

“IFSA is pleased to have been able to consult with the St James Ethics Centre during the process of reviewing the code and appreciates the guidance and suggestions provided,” he said.

A recent IFSA survey showed that 100 per cent of IFSA member companies incorporate the standards within their operational processes and controls, whilst 92 per cent said the standards were incorporated in their staff training, either specifically or by mention.