AFA, FPA Move to Become Code Monitoring Bodies

The FPA and AFA have lodged expressions of interest with ASIC to become a Code Monitoring body by the start of 2020.

Both associations informed their members of the move late last week stating that all financial advisers would need to belong to a Code Monitoring Body by 1 January 2020.

Membership of a Code Monitoring Body would not replace membership of a professional association, and the Bodies would not advocate for the value of financial advice, nor provide professional development or the networking opportunities currently offered by professional associations, according to the AFA.

Commenting on its expression of interest, the FPA stated that it had established a separate legal entity that would administer and enforce a compliance scheme for higher education and ethics standards across the financial planning profession, which would be open to FPA members and non-members.

FPA Chief Executive, Dante De Gori said code monitoring would benefits people seeking financial advice as it will give consumers greater confidence and trust in the advice they receive.

“We need to protect everyday Australians, and raise the standards of our collective financial services profession. We believe that financial planners and their clients can operate under a professional scheme rather than a more expensive commercial alternative which may not bring the depth of understanding of the various business models in the marketplace,” De Gori said.