Any changes to Standard 3 will be in 2022
If changes to the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics Standard 3 are to happen it will not happen until next year, according to BT Financial Group.
BT’s head of financial literacy and advocacy, Bryan Ashenden, said some confusion had been created after it had been reported that there was a possibility of FASEA making amendments to the problematic conflict of interest standard.
“I don’t think we’ll see a change imminently on Standard 3 as FASEA have only said they would consult on the issue and pass the findings onto Treasury. That means any changes will not take effect until at least January 2022 and that is only if Treasury makes amendments,” he said.
“That means that if there are some advisers still struggling with Standard 3, that struggle will still continue. It’s important for advisers in that situation to make sure they can get the support they need such as education on the code. There are options for them.”
Ashenden noted that as the FASEA code was only 18 months old, if changes were made the question was would that create more confusion or provide the clarity some of the industry was looking for.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
