Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

More scrutiny needed on FASEA code of ethics

financial-planning/FASEA/wealthdigital/code-of-ethics/rob-lavery/

16 May 2018
| By Hannah Wootton |
image
image image
expand image

Financial advisers need to be more concerned about the Financial Adviser Standards and Ethics Authority’s (FASEA’s) consultation on a new code of ethics considering that it will bind them, according to wealthdigital.

All financial advisers would need to abide by the code by the beginning of 2020. They also would need to choose a body to monitor their compliance with the code, which would have the ability to sanction them.

wealthdigital technical manager, Rob Lavery, said advisers should make submissions on the code to FASEA, discussion of which had been somewhat lost amongst the authority’s broader reforms.

“This code will be more than the subject of compulsory study. It will be an enforceable set of standards that advisers will have to abide by. The time to help mould this important element of industry governance is now,” he said.

“Not only will advisers need to adhere to the best interests duty, disclosure requirements and other black-and-white legal obligations, they will also have act in accordance with this less prescriptive code of ethics.”

Lavery also pointed out some issues with the current proposals.

He questioned the requirement that advisers “act in accordance with the spirit of all laws and regulations”, saying that it was a “broad” concept that was difficult to determine.

He called on advisers to question it while they had the opportunity to do so.

Secondly, Lavery was sceptical about the proposed requirement that advisers hold each other accountable for the protection of the public interest.

“Will this prevent unethical behaviour by requiring good people to say something, or will it engender mistrust between industry colleagues?” he asked.

“It is another standard that should be discussed by those in the advice industry.”

The consultation period on the ethics code would be open until 1 June, this year.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

3 days ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

4 weeks 1 day ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

5 days 18 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND