December 18, 2018
In what has been described as a ‘defining moment’ for the financial advice profession in Australia, six major professional associations have announced the establishment of a joint code monitoring cooperation agreement.
A joint release this week has outlined the intention of the following associations to work together to submit a code monitoring compliance scheme application to ASIC:
- Association of Financial Advisers (AFA)
- Financial Planning Association of Australia (FPA)
- SMSF Association
- Boutique Financial Planners (BFP)
- Stockbrokers and Financial Advisers Association (SAFAA)
- Financial Services Institute of Australasia (FINSIA)
The release notes this ‘defining moment’ for the financial advice profession in Australia “…clearly demonstrates a commitment and intention by the cooperating associations to lift the ethical and professional standards within the sector.”
Commenting further, FPA CEO, Dante De Gori, said: “This is an important step forward for the financial planning/advice sector that will facilitate recognition as a profession, which has long been sought by our collective members.”
In noting that being covered by a code monitoring compliance scheme is mandatory for all advisers, De Gori added that all existing financial planners and advisers will be required to subscribe to an approved scheme by 15 November 2019 and that the agreement between the associations will also leverage economies of scale and provide “…an efficient, streamlined code monitoring solution for the financial advice profession.”
In a separate release, AFA chief, Phil Kewin, reiterated the 15 November 2019 deadline, noting that all advisers were also required to have complied with the new Code of Ethics by 1 January 2020:
“With mandatory membership of a Compliance Scheme and Code Monitoring for financial planners/advisers due to commence effective from 1 January 2020, the Cooperating Associations are united by a joint desire to ensure that financial planners/advisers and their clients can operate under a professional scheme that can be delivered in a cost-effective manner, rather than relying upon a commercial alternative,” he added.