Extend code consultation period begs FPA
The Financial Planning Association (FPA) has urged the Financial Adviser Standards and Ethics Authority (FASEA) to grant an extension of time with respect to developing the final shape of the code of ethics for financial advisers.
In a submission filed with FASEA responding to the release of its legislative instrument around a code of conduct, the FPA said it had significant concerns with the draft documentation provided by FASEA and believed those concerned warranted attention.
It said that while it was using the submission to provide preliminary feedback, it was also requesting a time extension “to permit due process and for FASEA to undertake a more effective consultation with all key stakeholders”.
In its submission the FPA urged the FASEA to provide a plain English explanation of the code within an explanatory statement to provide “guidance on how to comply with, and judge compliance with, the code”.
“This additional guidance provided by the Explanatory Statement will be indispensable in driving behavioural change in practitioners and ensuring they are able to apply the Code to their activities,” the FPA submission said. “It will also be necessary to ensure the Code is applied consistently by [Code Monitoring Bodies] CMBs, particularly if there are multiple CMBs servicing the profession.”
“The role of the Explanatory Statement will be particularly important as there will not be an established body of case law to provide further definition on the application of each part of the Code,” the submission said.
“The FPA has reviewed the draft Code and the draft Explanatory Statement and considers that there are significant concerns that would need to be addressed for the Code to operate effectively,” it said. “However, due to the extremely short consultation period provided by FASEA, the FPA has been unable to adequately consult its members and analyse the issues that it has identified.”
“Due to its broad and long-lasting effect on the profession, the Code and the Explanatory Statement warrant a detailed examination and review by all stakeholders. We believe this is not possible under the current restricted consultation process set by FASEA.”
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