Skip to content

Brought to you by:
Email Print

AFA rejects bid for planners to set own code

A government proposal to require planners to establish and adhere to new ethics standards is likely to backfire, the Association of Financial Advisers (AFA) says.

Increased red tape and higher costs of providing financial advice will follow if Canberra proceeds, it warns. The Australian Securities and Investments Commissions will require extra resources to handle numerous submissions for ethics standards.

AFA CEO Brad Fox says the industry is already well served by the association’s code of conduct.

“The AFA code has proven to be extremely effective in guiding the culture and professional conduct of our members,” Mr Fox said. “It was developed… to be appropriate to our members and their clients, and to effectively set expectations for ethical and professional conduct above and beyond the letter of the law.”

Allowing planners to set their own code of ethics will produce a conflict of interest, even if third parties will monitor their compliance, the AFA says.

“This would mean licensees would need to sanction themselves for failure to adhere to their own code,” Mr Fox said.

“We don’t see this as best practice for an industry in the process of establishing itself as a recognised profession.”

Brought to you by: Insurance Jobs Brought to you by: Brought to you by: