The Self-Managed Super Fund Professionals' Association (SPAA) has announced it will reform its internal member code of conduct so that SPAA members are exempt from opt-in requirements when Future of Financial Advice (FOFA) reforms take effect.
Minister for Financial Services and Superannuation Bill Shorten last week announced that although opt-in requirements would remain a part of the FOFA reforms, financial advisers could obviate the need for opt-in if they were part of a professional organisation governed by an acceptable code of conduct, as determined by the Australian Securities and Investments Commission (ASIC).
SPAA chief executive Andrea Slattery said the group would work closely with ASIC to ensure its code of conduct meets the required standard to exempt members from opt-in.
"The FOFA reforms will result in the raising of standards across the financial planning profession, which is a positive step to boosting consumer confidence in advisors," Slattery said.
A statutorily imposed opt-in regime is unnecessary, because the introduction of the best interest duty, the banning of commissions, and the use of fee for service will assist in building trusted relationships with clients based on agreed terms with the client, according to SPAA.