FPA moves to principle-based code
The Financial Planning Association of Australia (FPA) has moved to a principles-based Professional Code.
The change, which followed member consultation, would help members to uphold the highest standards when dealing with clients, professionals and regulators and saw 20,000 words cut from the previous code.
Members would now follow a 10-point, one-page, principles-based Professional Code rather than a more complex rules-based system.
The three pillars were:
- Being: Putting the client first, integrity, objectivity and fairness;
- Knowing: Skills and knowledge and CPD;
- Doing: Professional behaviour, competence, diligence, confidentiality and data protection.
An important requirement under the FPA Code was that members’ actions were “aligned with promoting a culture that supports and requires integrity in others”.
FPA chief executive, Sarah Abood, said: “We included promoting a culture of integrity in the code to highlight that ethical principles apply at all levels, including those in senior positions who have the most influence over the culture of their organisation – not only client-facing practitioners.
“This issue was raised by members during consultation on the new Code, who feel strongly that it’s important that ethical behaviour is supported at all levels of an organisation.”
The FPA’s move to principles-based regulation mirrored the approach to industry regulation being canvassed as part of the Quality of Advice Review.
AUTHOR
Laura Dew
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