The Financial Adviser Standards and Ethics Authority has released a Code of Ethics guide to assist financial advisers in understanding, interpreting and applying the Code.
Included in the guide are case study examples which FASEA said are there to aid understanding of the requirements of the Code.
In a release, FASEA stated, “The Code is a living document and subject to change, as required. It is principles-based and is intended to apply to a wide range of situations.
“…advisers are ultimately responsible for exercising judgement in the application of the Code.”
“All of the formal obligations lie in the language of the Code – not the guidance document which is illustrative rather than conclusive in its guidance. As with all professions, advisers are ultimately responsible for exercising judgement in the application of the Code.”
FASEA released the final version of its 12-point Code of Ethics standard for advisers in February this year (see: FASEA Releases 12 Point Code…).
Compliance with the Code which comprises five values and twelve Standards will come into effect on 1 January 2020.
“The Code has been designed to encourage and embed higher standards of behaviour and professionalism in the financial advice industry,” FASEA stated.
“As such, it establishes ethical duties that go beyond the minimum requirements of existing law. It should be noted that, as a legislative instrument, the Code has the force of law.”
FASEA confirmed it will host a series of consultation briefing sessions with a number of educational, professional, consumer and industry stakeholders, to provide opportunity for consultation on the practical elements of the Code, and to communicate and explain the integrated nature of the Code.
Click here to view the Code of Ethics.
