Licensee codes of conduct impractical: Kell
Creating licensee-specific codes of conduct is an option - but there are some real challenges for anyone who wants to go down that route, according to the Australian Securities and Investments Commission (ASIC) Commissioner Peter Kell.
Kell told Money Management that, because of the role codes of conduct could play in obviating the need for the opt-in requirement, the regulator could see why licensees were thinking about creating their own codes.
However, he pointed to various potential downsides.
"Administering a code, monitoring compliance with a code, enforcing the rules around the code - it's not a straightforward matter," Kell said.
"It requires resources, a rigorous approach, and we'd want to see that as part of any code that comes forward."
There is also an issue around the way in which codes are governed, Kell said.
"Typically, we like to see some sort of independence, some sort of oversight for a code that means that there's an independent eye cast over its operations," he said.
"That's obviously a little more challenging with an entity-specific code."
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
