As a response to recent confusion regarding the FASEA Code of Ethics, the education standards body has provided a resource where advisers can get answers to common questions.
The alleged vagueness of the Code has been a source of consternation for many industry stakeholders, including the Australian Institute of Superannuation Trustees. The AIST’s CEO, Eva Scheerlink, recently wrote an open letter to FASEA CEO Stephen Glenfield, saying the Code has "insufficient clarity on how aspects of the Code will apply to the provision of scaled (particularly intra-fund) advice."
Back in October, FPA CEO Dante De Gori said “financial planners and even the public are confused about which standards should be followed – those in the Code of Ethics set by FASEA or those in Corporations law set by the Australian Parliament.”
FASEA has now attempted to address these concerns. Issues covered include referral arrangements with mortgage brokers (a breach if referral fees are paid directly to the adviser), insurance commissions (allowed under certain circumstances) and the required format when obtaining consent from clients (can be existing forms including Ongoing Services Agreements, Initial Service Agreements and Authority to proceed with Advice).
You can read the full list of questions and answers here.
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25 November, 2019
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The AFA has issued a letter describing FASEA's Code of Ethics as an "impossible puzzle".