FPA ready for ASIC's code upgrade
The Financial Planning Association (FPA) will be ready to go with its updated professional code of conduct as soon as the Australian Securities and Investments Commission (ASIC) "hits the go button", according to the association's general manager for policy and standards Dante De Gori.
"We've been lucky that we've been speaking to ASIC, and have been developing our thoughts around the amendments around our code, but I don't think there are too many surprises in there," he said.
The FPA yesterday announced it would be upgrading its code in line with the changes.
ASIC included a limited number of examples in the consultation paper elaborating on how a code could obviate the need for a planner to opt-in. These included regularly advising clients of their ability to opt out and a complete ban on ongoing asset-based remuneration.
De Gori said the specific examples in the consultation paper represented an area ASIC had been struggling with, but that was why there was a consultation process, and the FPA had already looked at various possible scenarios.
"It is a consultation paper and they're looking for feedback. This is new territory for them, but it does show glimpses of what ASIC's thinking," he said.
"One of the things we're emphasising is that this is a great opportunity to update the code, not just to bring it in line with these changes but to future-proof it. This isn't just about [Future of Financial Advice reforms]," he said.
De Gori said it was important that any professional code maintained the principle that planners should only be paid for services they actually delivered - the original intent of the opt-in measure.
By obviating the need to comply with that part of the regulation, the code would provide flexibility for planners to deliver those services without the prescriptive requirement of a two-year opt-in process.
He said the FPA's code would also go above what was required under opt-in, in that the government provision effectively allowed planners to go two years without being obligated to contact a client, but the FPA code would require planners to review clients regularly, he said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
