The Financial Adviser Standards and Ethics Authority (FASEA) has issued a guide to the new Code of Ethics which is to apply to all Australian financial advisers from 1 January next year.
Under the amended Corporations Act 2001 the education, training and ethical standards of Australia’s licensed financial advisers has been highlighted.
In a statement, FASEA said it was now the declared standards body charged with responsibility for implementing the legislative amendments.
“This includes making the sole, compulsory Code of Ethics that is applicable to the conduct of all advisers who provide financial services to retail clients,” the Authority said.
“The making of the code, and changes to education and training standards, reflect community expectations that the provision of professional advice be centred on serving the best interests of the client free from any conflict,” it said.
The Code, which was released earlier this year, comprises five values and 12 standards. Compliance with it will be mandatory from 1 January 2020.
“The Code has been designed to encourage and embed higher standards of behaviour and professionalism in the financial advice industry,” FASEA said.
“As such, it establishes ethical duties that go beyond the minimum requirements of existing law. It should be noted that, as a legislative instrument, the Code has the force of law.”
The Authority said the guide included case study examples.
“Their purpose is to aid understanding of the requirements of the code, which is a living document and subject to change as required,” FASEA said.
The Code of Ethics can be accessed on the FASEA website at this PS News link.