FSC members may have breached ethics code

A number of FSC members have provided testimony before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in recent weeks, admitting to behaviour that federal Treasurer Scott Morrison has warned may incur jail sentences.

Asked by InvestorDaily whether the testimony may breach the FSC’s published ethics and conduct protocols, a spokesperson for the council confirmed that an investitgative process is underway.

“Our process for determining whether any member organisations have been in breach of FSC Standard No 1: Code of Ethics & Code of Conduct as a result of disclosures in the past week is already in train,” the spokesperson said.

“The Financial Services Council and its members take breaches of mandatory standards very seriously. Each of the boards of our member organisations must attest and sign off annually that standards are being met.”

The comments follow a statement issued by the FSC last week welcoming the announcement of tougher criminal and civil penalties in the wake of the royal commission.