FPA to adopt international code of ethics
The Financial Planning Association (FPA) will be streamlining its codes, rules and principles into a single code of practice in addition to signing on to a new international Code of Ethics adopted by the Financial Planning Standards Board (FPSB).
The FPA’s chief executive, Jo-Anne Bloch, made the announcement at the FPA national conference on the Gold Coast.
Bloch said Australia would be the first country of the 22 affiliate countries in the FPSB community to implement the Code of Ethics, which was adopted by the FPSB council and board in October this year.
The new FPSB Code of Ethics will cover eight principles, including a new principle of ‘client first’, as well as entrench the minimum ethical standards FPA members must already meet and “set the benchmark for all financial planners”.
Further to promoting an ethical environment for clients to receive quality financial services, the new code will also be in line with “global standards and expectations” and advance the portability of the Certified Financial Planner designation around the world.
The FPA is also planning to reorganise nine “separate layers of professional obligation” for members into a single Code of Professional Practice. The single code will encompass four components, including a code of ethics, practice standards, rules, and Guidance.
“The new [FPSB] Code of Ethics, and the streamlined Code of Professional Practice, represent a major step forward for the profession,” Bloch said.
“We want to make it clear to financial planners, their clients and the community at large that our members are committed to their profession and to engendering trust and confidence in their services.”
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
