Code of Ethics
This consultation process has now been completed
The code of ethics for financial advisers has been released as an exposure draft for consultation and is open until 1 June 2018. The Standards Authority is seeking feedback on the practical implications of key parts of the Code.
- • The Standards Authority invites you to provide written submissions and/or comments via a dedicated consultations email address (firstname.lastname@example.org).
- • The Standards Authority intends hosting a series of events, potentially including webcasts and presentations at industry and consumer forums
Background to Code of Ethics
Appropriate financial advice can significantly improve people’s financial well-being. In a time of increasing volatility, it is in the public interest that consumers can trust and have confidence in the advice they receive. In turn, this requires that financial advisers develop the knowledge and skills, and honour the public commitments, required to earn that trust.
The Code lays the foundations for a true profession to emerge. As such, those who formerly provided a commercial service, are now committed to offering a professional service – informed by a Code of Ethics that is intended to shape every aspect of their professional conduct.
This Code and the Standards within it are a matter of legal obligation and provide a foundation for conduct for all relevant providers, whatever their employment circumstance.
Consultation interests of FASEA
We encourage you to provide feedback on any aspect of the proposed Code of Ethics. The Standards Authority is interested in your specific feedback on:
1. How the Code addresses the consumer detriments that have arisen in financial advice, particularly Standard 2, which is intended to ensure that the advice (or referral or other service) that a consumer gets from an Adviser does not produce inappropriate personal advantage to the Adviser.
Standard 2: [Relevant providers] Must neither advise, refer, nor act in any other manner, where inappropriate personal advantage is derived by the relevant provider. Other issues to consider in relation to this Standard are:
- a) What types of personal advantage are appropriate vs inappropriate?
- b) What might be the unintended consequences of the current draft?
- c) How might the Standard be expressed to avoid unintended consequences?
2. How do the other Standards respond to this type of consideration?
3. The practical application of the proposed Code in terms of:
- a) Adviser practice
- b) Licensee practice
- c) Education and support
- d) Compliance requirements
- e) Consumer experience
Information about you
It will assist FASEA to understand who has provided submissions and the background to your work.
Please provide: your name, your role (job title), your role in making the submission (e.g. Adviser, licensee, client etc.
You may also advise if you want your submission (or parts of it) to be treated as confidential.
Make Your Submission
Your feedback and submissions on this consultation paper will assist FASEA to finalise the development of a Standard for the Code of Ethics.
Submissions must be provided in writing. To ensure your submission is valid, please send it to our dedicated consultations email address (email@example.com).