The Financial Planning Association of Australia The Financial Planning Association of Australia

FASEA


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 Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021 put in place the new Single Disciplinary Body (SDB) within ASIC based on the Financial Services and Credit Panel (FSCP). A FSCP may be convened to:

  • consider financial planner misconduct and potential breaches of the FASEA standards
  • apply sanctions where appropriate, which will be posted on the planner’s registration on the FAR

The new Single Disciplinary Body is due to commence on 1 January 2022.

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

Exam Dates

FASEA has announced Exam dates and locations for November of 2021*. Registrations close 29 October 2021.

See FASEA’s website for registration details.

Exam Locations Exams will be held in more than 20 locations across metropolitan and regional Australia (See FASEA website)
Preparing for the exam

FASEA has released guidance to help prepare for the exam, which includes detail on the curriculum, reading list and practice questions.

The FPA’s 2019 Roadshow booklet: Helping you understand the FASEA Code of Ethics may help also assist with Exam preparations.

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

How to register You can register to sit for the exam via the FASEA website.

What you need to know about the Exam extension

The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021 extends the cut‑off date to 30 September 2022 for advisers who have attempted the exam at least twice prior to 1 January 2022.

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 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, or 1 October 2022 if the exam extension criteria applies.
  • 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.
    • MyCPDon 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.
    • The Professional Year tools and templates on FPA Learn can help you understand and log on your professional year obligations and supervisory requirements.
  • 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”

 

FASEA WILL BE WOUND UP

The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021 also wind up of FASEA on 1 January 2022, with its functions transferred to the Minister responsible for administering the Corporations Act and to ASIC.

  • The responsible Minister will set professional standards for financial planners including the Code of Ethics, education, CPD, exam, and professional year requirements, and approve degrees, courses and foreign qualifications
  • Treasury will assist the Minister
  • ASIC will administer the exam.
  • Standards developed by FASEA will remain in place unless the Minister approves amendments after 1 January 2022.

The changes to the FASEA roles are due to commence on 1 January 2022.

 

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