Jayson Forrest is the managing editor of Money & Life Magazine.
Six professional associations agree to work together to submit a code monitoring compliance scheme application to ASIC.
Six major professional associations, representing the financial planning/advice sector, have signed an historic co-operation agreement to develop a code monitoring solution for their members.
The associations have agreed to work together to submit a code monitoring compliance scheme application to ASIC. The compliance scheme will enable compliance with FASEA’s code of ethics to be monitored and enforced.
The six associations currently participating in the agreement are: Financial Planning Association of Australia (FPA), Association of Financial Advisers (AFA), Boutique Financial Planners (BFP), Financial Services Institute of Australasia (FINSIA), Self Managed Super Fund Association (SMSF Association), and Stockbrokers and Financial Advisers Association (SAFAA).
According to FPA CEO, Dante De Gori CFP®, this agreement is a defining moment for the financial advice profession in Australia, as it clearly demonstrates a commitment and intention by the participating associations to lift the ethical and professional standards within the sector.
“Being covered by a code monitoring compliance scheme is mandatory,” De Gore said. “All existing financial planners and advisers will be required to subscribe to an approved scheme by 15 November 2019.
“The co-operating associations are united by a joint purpose to ensure that financial planners and advisers can choose to subscribe to a professional association’s based scheme, rather than commercial alternatives that may be less suitable or more expensive. This scheme is being developed by the profession for the benefit of the public.”
De Gori added that each of the participating associations will be able to offer the code monitoring compliance scheme to its members. To this end, a bespoke company – Code Monitoring Australia – has been established in order to operate the compliance scheme, which will be called the Financial Advisers Monitoring Scheme (FAMS).
The final application for compliance scheme approval is due to be lodged with ASIC by 30 June 2019.