The Financial Planning Association (FPA), Association of Financial Advisers (AFA), Boutique Financial Planners (BFP), Financial Services Institute of Australasia (FINSIA), SMSF Association and Stockbrokers and Financial Advisers Association (SAFAA) have signed on to develop a code monitoring solution for their members.
The associations have agreed to submit a code monitoring compliance scheme application to the Australian Securities and Investments Commission (ASIC), which would enable compliance with FASEA’s upcoming code of ethics to be monitored and enforced.
FPA chief executive, Dante De Gori, said it was an important step for the financial planning sector that would facilitate recognition as a profession.
“Being covered by a code monitoring compliance scheme is mandatory,” he said. “All existing financial planners and advisers will be required to subscribe to an approved scheme by 15 November 2019.”
“The cooperating associations are united by a joint purpose to ensure that financial planners and advisers can choose to subscribe to a professional associations based scheme, rather than commercial alternatives which may be less suitable or more expensive.”
“This scheme is being developed by the profession for the benefit of the public.”
The cooperating associations would be able to offer the code monitoring compliance scheme to its members through a special purpose company, called the Financial Advisers Monitoring Scheme.
De Gori said the scheme would benefit all Australians seeking financial advice as they would have greater confidence and trust in the advice they received.
The associations intend to engage with consumers, other associations, financial planners, licensees and stakeholders to develop the scheme.