FASEA

FASEA Code of Ethics

What you need to know about the FASEA Code of Ethics

The Financial Planner and Financial Adviser Code of Ethics (the FASEA Code) commenced on 1 January 2020. It sets values and standards which financial planners must adhere to.

In October 2019, FASEA released Guidance to clarify the meaning of the Code’s standards. Following industry consultation, FASEA released their preliminary response to the submissions, followed by further guidance in October 2020.

The guidance issued by FASEA in October 2020 provided further clarity about its requirements for conflicts of interest, remuneration and referrals.

Further information and guidance is available on the FPA’s FASEA Code of Ethics Information Hub.

Monitoring Code compliance

The Government announced it will establish a new single disciplinary body within ASIC, and financial planners will no longer have to register with an ASIC approved Code compliance scheme (see ASIC’s statement). The Government has since released legislation to implement these changes, which is currently progressing through parliament.

The changes also include the winding up of FASEA on 1 January 2022, with its functions transferred to the Minister responsible for administering the Corporations Act and to ASIC. It is not anticipated that changes will be made to the Code of Ethics due to the winding up of FASEA but we will continue to update members on any new developments.

ASIC will take a facilitative approach to compliance with standards 3 and 7 of the Code  until the new disciplinary body is operational. It is important to know the reasonable steps ASIC expects financial planners and licensees to take to comply with the Code during the facilitative period.

Exam

What you need to know about the Exam

^{* Due to the COVID 19 pandemic and the disruption it has caused, FASEA has announced some changes to FASEA exam requirements: For those who make two genuine attempts to pass the FASEA exam, and were unable to pass the exam, there will be a one-time, limited extension into 2022. There will be at least one further opportunity to pass the exam offered in 2022 for those who qualify for the exemption. Costs, and timings for the 2022 period have yet to be confirmed. Read the FASEA statement here.}

FASEA Standards

The Financial Adviser Standards and Ethics Authority (FASEA) has set the following standards for financial planners:

• Code of Ethics – commencement 1 January 2020
• Degrees, Qualifications and Courses Standard
  • New financial planners must meet the relevant requirements of this standard from 1 January 2019
  • Existing financial planners (as at 30 December 2018) must meet the relevant requirements set in this standard by 1 January 2026
  • FPA’s Return to Learn can help you navigate the FASEA education requirements
• Foreign Qualifications Policy – financial planners who are relying on completed foreign qualifications to meet the education standard, must follow the process set in this standard.
• Examination Standard
  • New financial planners must pass the exam before commencing quarter 3 of their Professional Year
  • Existing financial planners must have passed the exam by 1 January 2022
• Continuing Professional Development Standard – This standard applies from the commencement of the licensee’s CPD year during 2019. FPA members should also continue to meet our CPD obligations.
  • MyCPD on FPA’s Return to Learn is a one-stop shop to plan, access and track your CPD with ease.
• Work and Training (Professional Year) Standard –
  • From 1 January 2019, all new financial planners must meet this standard before being authorised to provide financial advice to retail clients. New financial planners must meet the education standard requirements prior to commencing their professional year.
  • This standard sets requirements for existing financial planners who are supervisors of new financial planners undertaking their professional year.
• Provisional Relevant Provider Expression – From 1 January 2019, new financial planners who have met the course requirements and are undertaking their professional year, may use the terms “Provisional Financial Adviser” or “Provisional Financial Planner”