Advice bodies reach code monitoring agreement

The six professional associations currently participating in the agreement are the Financial Planning Association of Australia (FPA), the Association of Financial Advisers (AFA), 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 (SAFAA).

Under the agreement, all existing advisers will be required to subscribe to an approved scheme by 15 November 2019.

Further, a special purpose company, Code Monitoring Australia (CMA), has been established for to operate the compliance scheme, which will be called the Financial Advisers Monitoring Scheme (FAMS).

CMA is a wholly-owned subsidiary of the FPA.

The associations have agreed to work together in submitting a code monitoring compliance scheme application to ASIC, which will then enable the Financial Adviser Standards and Ethics Authority (FASEA) to monitor and enforce compliance with the scheme.

FPA chief executive Dante De Gori said the move is an important step forward for the financial planning/advice sector that will facilitate recognition as a profession, which has long been sought by our collective members.

He also said the final application to FASEA is due to be lodged with ASIC by 30 June 2019.

“Code monitoring will benefit all Australians seeking financial advice as they can have greater confidence and trust in the advice they receive,” Mr De Gori said.

“The co-operating associations will engage with consumers, other associations, financial planners/advisers, licensees and other stakeholders to develop the compliance scheme.”

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].