Fiancial Adviser Code of Ethics
... a new level of professionalism
The Financial Adviser Code of Ethics is a cornerstone of the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 which sets out the education, training and ethical standards of licensed financial advisers in Australia.
All Financial Planners and Advisers are required to comply with the FASEA Code of Ethics from 1st January 2020.
What is the Financial Adviser Code of Ethics?
The Code is a set of principles and core values that lays the foundations for a true profession to emerge. It is a principles based model providing a powerful framework to shape and reinforce ethical conduct and encourage a deeper engagement by the individual with their duties to their client as well as wider society.
The Code of Ethics and the Standards within it are a matter of legal obligation and provide a foundation for conduct for all financial advisers, whatever their employment circumstances.
Who is responsible for enforcing the Code of Ethics?
The Financial Services and Credit Panel (FSCP) is responsible for administering adherence to the Code. The FSCP is a pool of industry participants, appointed by the responsible Minister, that ASIC draws upon when forming individual sitting panels.
The FSCP operates separately from, but alongside, ASIC’s existing administrative decision-making processes. A sitting panel will be convened by ASIC to consider certain suspected misconduct by, or circumstances relating to, a financial adviser. Each sitting panel comprises of an ASIC staff member and at least two members from the FSCP.
A sitting panel has a range of powers that enable it to respond to a range of misconduct. These powers include:
- the power to direct financial advisers to undertake specified training, counselling, supervision or report certain matters to ASIC;
- the power to suspend or prohibit a financial adviser’s registration;
- the power to issue infringement notices in specified circumstances;
- the power to recommend that ASIC commence civil penalty proceedings; and
- the power to accept enforceable undertakings from financial advisers.
The FSCP Outcomes Register contains decisions of the FSCP and a brief explanation of the background to the decisions.
Below is a sample video from our Financial Adviser Exam Masterclass (Learning Materials & Videos).
Financial Adviser Code of Ethics
Financial Advisers & Financial Planners
must adhere to the Financial Adviser Code of Ethics
Click below for Code of Ethics GUIDANCE PACK