Advisers are evenly split on the question of whether they would prefer to operate under a representative association’s code of conduct or their own licensee’s code.
As we publish this story, 49% of advisers have said they would prefer to work under their own licensee’s code of conduct, just shading the 44% who said they would prefer to use an adviser association’s code. The remaining 7% would prefer another option or are not sure.
This question has arisen in the first place as a result of the interest shown by advisers and licensees in the opportunity to avoid the client opt-in measures that will be required under Future of Financial Advice reform legislation, set to commence from 1 July 2013. A class order relief accompanying the legislation will obviate the need to observe opt-in if an adviser operates his/her business under a complying code of conduct.
While the poll result is evenly split to date, the comments we have received are mostly in favour of the association’s code of conduct option:
… [a] licensee code of conduct can at times be clouded by commercial considerations
“Advisers Association Code of conduct is my preferred method of operation; licensee code of conduct can at times be clouded by commercial considerations.”
“… dealer groups codes may vary considerably – some being overly restrictive, while others may be too liberal. If there is one ‘subscribed-to’ standard, everyone knows the boundaries. Hopefully then, all advisers will operate within those.”
“… a licensee code of conduct would be made to suit that particular licensee and could be flawed.”
On the other side of the coin, one of the arguments in favour of a dealer group code of conduct relates to the time and cost efficiencies associated with bringing such a code into an existing compliance process already operating within licensee groups.
It’s not too late to cast your vote and make your voice heard on what will be a key part of any future advice process in Australia…
After well over 30 years in the industry, no one has yet to find a proper solution for all the issues that constantly face the industry except more and more onerous compliance. It is no wonder fees are increasing We spend 60 % of our time satisfying compliance issues.The regulators need to spend 3 years in the business to understand how it works, before they pass inoperable and over bearing laws. Has anyone got any moral virtues left in them?
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