Associations respond to Government’s decision on code monitoring
The heads of Australia’s six leading professional associations for financial advisers have expressed disappointment in the timing of the Government’s decision today to not proceed with code monitoring, just a month before all financial advisers are due to have registered. The associations have urged the Government to work with them on a new disciplinary system for financial advisers.
As a result of the Government’s announcement, the associations have withdrawn their application to have Code Monitoring Australia (CMA) approved as a nation-wide monitoring and enforcement scheme for financial advisers.
The associations said: “Given the work that has been undertaken and costs incurred in good faith, we are disappointed that Code Monitoring Australia won’t proceed. We offered an effective disciplinary model which met ASIC’s requirements and was ready to go on 1 January 2020.
“Today’s announcement by the Government makes it unreasonable for us to proceed with CMA. We need to avoid adding complexity, further duplication and cost to the regulation of financial advice.
“We are committed to ensuring that appropriate disciplinary procedures and consumer protections are in place, but are disappointed that the announcement is so late in the development process.
“We remain committed to working with the Government to ensure the enforcement of the FASEA Code of Ethics, which protects consumers and promotes high standards among financial advisers.”
About Code Monitoring Australia and the FASEA Code
CMA was established with the joint support of the Financial Planning Association of Australia (FPA), the Association of Financial Advisers (AFA), the Boutique Financial Planners (BFP), the Financial Services Institute of Australasia (FINSIA), the Self-Managed Super Fund Association (SMSF Association), and the Stockbrokers And Financial Advisers Association of Australia (SAFAA).
The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 (Cth) established education, training, and ethical standards for licensed financial advisers in Australia.
The Financial Adviser Standards and Ethics Authority (FASEA) has been mandated by the Australian Federal Government to implement these standards including annual continuous professional development and mandatory Code of Ethics requirements.