AFA points to remuneration conflicts
The Association of Financial Advisers (AFA) has acknowledged that conflicts of interest exist at all levels with respect to adviser remuneration.
In a policy update delivered to members in the wake of the Financial Adviser Standards and Ethics Authority (FASEA) final legislative instrument for the Code of Ethics, the AFA’s policy director, Phil Anderson pointed to the new Standard 3 which stated: “You must not advise, refer or act in any other manner where you have a conflict of interest or duty”.
He suggested this might be practically problematic.
“We have some practical concerns about the reality of this given the extent to which conflicts of interest exist at all levels and with the different adviser remuneration arrangements,” Anderson said.
Anderson and AFA chief executive, Phil Kewin are currently in Canberra meeting with politicians including Australian Conservatives leader, Senator Cory Bernardi.
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