The Code of Ethics imposes ethical duties on financial advisers, it is designed to encourage higher standards of behaviour and professionalism in the financial services industry. The Code of ethics comes into effect from 1 January 2020.
The legislative instrument was informed through consultation received in 18 submissions during the final consultation period for this standard in November and December 2018.
FASEA proposes the Code of Ethics addressing the values of Trustworthiness, Competence, Honesty, Fairness and Diligence. All advisers must act at all times, in all cases in a manner that is demonstrably consistent with the 12 standards which will be monitored by ASIC’s approved compliance schemes.
The explanatory statement to the standard contains case studies to provide guidance for stakeholders in the practical application of the code, with further case studies to be made available in a forthcoming guidance document that will be provided in due course.