Having developed an effective disciplinary model to monitor and enforce the FASEA Code of Ethics, ready to go on 1 January 2020, Stockbrokers and Financial Advisers Association (SAFAA) and other associations representing financial advisers are disappointed in the timing of the government’s decision to move away from this model at this late stage.
They are urging the government to work with them on a new disciplinary system for financial advisers.
Australia’s six leading professional associations for financial advisers have withdrawn their application to have Code Monitoring Australia (CMA) approved as a nation-wide scheme for monitoring and enforcing the FASEA Code of Ethics, due to come into force on 1 January 2020, following the government’s announcement that it will establish a single disciplinary body as recommended by the Financial Services Royal Commission.
“The announcement by the government makes it inappropriate for us to proceed with CMA,” noted Judith Fox, CEO, SAFAA. “We need to avoid adding complexity, further duplication and cost to the regulation of financial advice.
“We question the timing of the government’s decision, which will just prolong the uncertainty for financial advisers and the many thousands of Australians they serve.
“The government needs to deliver a clear and workable solution to enforcing ethical conduct. Any code monitoring body must have a solid understanding of the different streams of financial advice that consumers request. The solution must be delivered as efficiently as possible to minimise costs to consumers.”