More than 60% of advisers say they are now more likely to join an adviser representative association or retain their existing membership in order to be able to operate under a code of conduct that obviates the need to observe the opt-in regulations being introduced in the Future of Financial Advice reforms.
While ASIC has only recently released a consultation paper on what may constitute a complying code of conduct, it is already evident that any complying code will be required to include processes that very closely reflect the intention of the opt-in measures contained in the FoFA legislation.
It is also apparent that, if the ‘spirit’ of opt-in is to be implemented within a complying code of conduct, most advisers (61% as we publish this story) would prefer to be regulated under this equivalent form of opt-in, rather than be subject to compliance and regulation by ASIC, and would be motivated to join an adviser associastion or maintain their membership.
The bottom line to this discussion is that it represents good news for the two main adviser associations, namely the Financial Planning Association and the Association of Financial Advisers, whose membership numbers appear bound to increase as a result of being able to offer a complying code of conduct for their members.
Another question that has arisen from this discussion is whether advisers would prefer their licensee or their adviser association to administer the code of conduct under which they operate. One adviser has commented:
If we have a code of conduct and the employer is a member then why couldn’t the employer do the audit for code of compliance at the same time?
“I am already audited once a year by my licensee. If we have a code of conduct and the employer is a member then why couldn’t the employer do the audit for code of compliance at the same time? Extra cost would be close to zero.”
We will return to this question in another poll shorty. But for the time being, tell us whether you would prefer to join or maintain membership with an adviser association to operate under a code of conduct in order to overcome the requirement to comply with FoFA’s opt-in regulations…
