Six major financial planning/advice sector professional bodies, including the SMSF Association, have signed a cooperation agreement to develop a code monitoring solution for their members.
The associations have agreed to collaborate to submit a code monitoring compliance scheme application to the Australian Securities and Investments Commission.
The scheme will enable compliance with the Financial Adviser Standards and Ethics Authority code of ethics to be monitored and enforced.
The six associations participating in the agreement are the SMSF Association, Financial Planning Association of Australia (FPA), Association of Financial Advisers, Stockbrokers and Financial Advisers Association, Boutique Financial Planners and Financial Services Institute of Australasia.
FPA chief executive Dante De Gori said the collaboration demonstrates an intention by the associations to lift the ethical and professional standards within the sector.
“The cooperating associations are united by a joint purpose to ensure that financial planners and advisers can choose to subscribe to a professional associations-based scheme, rather than commercial alternatives which may be less suitable or more expensive,” De Gori said.
”Being covered by a code monitoring compliance scheme is mandatory. All existing financial planners and advisers will be required to subscribe to an approved scheme by 15 November 2019.
“The cooperating associations will engage with consumers, other associations, financial planners/advisers, licensees and other stakeholders to develop the compliance scheme.”
The agreement will also leverage economies of scale and will provide a streamlined code monitoring solution.
A special purpose company, Code Monitoring Australia, has been established to operate the compliance scheme, which will be called the Financial Advisers Monitoring Scheme.