The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 established the Financial Adviser Standards and Ethics Authority (FASEA) in April 2017, to set the education, training and ethical standards of licensed financial advisers in Australia.
FASEA was required to issue standards and a Code of Ethics, with which all financial advisers must comply, outlining their ethical obligations to their clients and educational standards or pathways that new and existing advisers must meet in order to comply with the requirements in the Act.
Compliance with the Code of Ethics is a requirement for all financial advisers from 1 January 2020. The Code brings together expectations of the Australian community for the provision of professional financial advice. It comprises five (5) values and twelve (12) standards.
The Code issued by FASEA is a set of principles and core values that lays the foundations for a true profession to emerge. It is a principles based model providing a powerful framework to shape and reinforce ethical conduct and encourage a deeper engagement by the individual with their duties to their client as well as wider society.
As such, those who formerly provided a commercial service, are now committed to offering a professional service – informed by a Code of Ethics that is intended to shape every aspect of their professional conduct. This Code and the Standards within it are a matter of legal obligation and provide a foundation for conduct for all financial advisers, whatever their employment circumstance.
Please see the FASEA – summary for clients for more information on the new Code of Ethics.