We’re here to help on FASEA code says Lonsec
First it was the offer of a conflict-free environment on managed accounts, now research and ratings house, Lonsec is arguing that the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics means advisers need “quality investment research and technology tools” to help them comply with the standards.
In a statement issued today, Lonsec chief executive and former Paragem executive, Charlie Haynes pointed out that the new FASEA code now required advisers to demonstrate they were acting in their client’s best interest while avoiding even a perception of conflicted recommendations.
“For advisers the FASEA standards are no longer an intellectual exercise. Despite the practicality issues, they are now the yardstick against which they will be judged by regulators, clients and the community,” he said.
“The reality is that the only way an adviser can comply with the standards effectively and efficiently is to access quality investment research and technology tools that enable them to provide detailed product comparisons across all asset classes, including superannuation funds and investment options.
“This goes to the heart of Standard 9 of the Code of Ethics, which requires advisers to make recommendations with competence,” Haynes said.
Lonsec is also arguing that FASEA’s Standard 3 with respect to conflicts of interest should persuade financial planning practices to strongly consider moving to a conflict-free environment to safeguard their position.
“Lonsec is now offering to solve this and help advisers moving forward by acquiring the investment management rights from existing portfolios and to manage the investment process on behalf of the adviser without ongoing conflict,” Haynes said.
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