Draft Guidance on Code of Ethics

Mar 20, 2018

Code of Ethics

This consultation process has now been completed
20/03/2018 – 01/06/2018


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 (
  • The Standards Authority intends hosting a series of events, potentially including webcasts and presentations at industry and consumer forums


Draft consultation template – Code of Ethics

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:

    1. a)  What types of personal advantage are appropriate vs inappropriate?
    2. b)  What might be the unintended consequences of the current draft?
    3. 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:
    1. a)  Adviser practice
    2. b)  Licensee practice
    3. c)  Education and support
    4. d)  Compliance requirements
    5. 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.


FASEA invites submissions and/or comments on the draft Legislative Instrument through our dedicated consultations email ( or via our Contact Us page.

Due date for submission: 5pm 1st June 2018

The Financial Adviser Standards and Ethics Authority Limited was established in 2017 to set the education, training and ethical standards of financial advisers in Australia.



The Financial Adviser Standards and Ethics Authority Limited was established in 2017 to set the education, training and ethical standards of financial advisers in Australia.