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.

The FPA produced a 2019 Roadshow booklet: Helping you understand the FASEA Code of Ethics to assist members with meeting the standards of the Code.

In October 2019, FASEA released Guidance to clarify the meaning of the Code’s standards. FASEA is continuing its consultation with stakeholders, including the FPA, to finalise this Guidance. As detailed in our submission, the FPA has particular concerns about the Code’s lack of clarity about its requirements for conflicts of interest, remuneration and referrals.

Monitoring Code compliance

As the Government announced it will establish a new single disciplinary body, financial planners no longer have to register with an ASIC approved Code compliance scheme (see ASIC’s statement).

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.

FASEA continues to update its FAQ on what financial planners and licensees must do while its Guidance is being finalised.

Exam

What you need to know about the Exam

Support for FPA members

To help you stay up to speed, we’re already working on updates to FPA Return to Learn to include the new information from FASEA. Return to Learn is your online education hub bringing together what you need to know to be FASEA compliant.

We know that for many of you it may have been a while since you prepared for and sat an exam, so you’ll find lots of tips and resources to help you get ready on Return to Learn.

For further detailed information on the FASEA exam, please refer to the FASEA website.

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 2024
  • 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 2021
• 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”