ASIC's code of conduct paper imminent
The Australian Securities and Investments Commission (ASIC) is preparing to release within the next two weeks a Consultation Paper (CP) on the codes of conduct required to obviate opt-in.
Speaking at the Financial Ombudsman Service national conference, Sydney University Associate Professor and new co-senior executive leader of ASIC's financial advisers team Joanna Bird said the CP would set out ASIC's proposed approach to assessing codes of conduct that are lodged for approval for the purposes of obviating opt-in requirements.
Following the CP, ASIC will update its existing Regulatory Guide 183 on approval of codes of conduct to reflect how it will oversee that opt-in power, she said.
Bird acknowledged the significant interest in how ASIC would approach code approval, and said the regulator was keen to hear from the industry on what the codes should look like, what their scope should be, and what mechanisms would obviate opt-in.
Bird asked that the industry send in submissions dealing with what mechanisms could also be used to deal with disengaged consumers, the problem opt-in was originally proposed to solve.
Bird also suggested that demonstrating that clients were better off under the best interests test was not only about improving their financial situation.
Planners could also meet the best interests test by looking at the client's situation and giving them peace of mind that they were on track to achieving their financial objectives, she said.
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