A number of financial services industry associations have undertaken reviews of their codes of conduct and standards in preparation for the federal government’s string of industry reforms.
The Financial Services Council (FSC) and the Association of Financial Advisers (AFA) have each begun internal reviews, with the FPA set to conduct work shortly.
“The FSC is currently reviewing its standards in light of the reforms and will be making the necessary amendments when the new laws are finalised’,” FSC chief executive John Brogden said.
FPA policy and government relations general manager Dante De Gori said the advice association intended to conduct a review of its standards in the coming months.
“No doubt we will be reviewing our code and our standards in respect to making sure that not only there is alignment, but that our code is a greater standard than legislation,” De Gori said.
“At this stage we can’t see any obvious signs that indicate we have to substantially change our code in any way, but nevertheless that will be part of the process that the FPA will do over the next six to 12 months.”
AFA national president Brad Fox said the AFA began reviewing elements of its internal rules midway through the year.
“We started a process addressing the area of professional standards and adviser conduct several months ago and the results of that will come to market in 2012,” Fox said.
“When the AFA considers professionalism, there is an incontrovertible link between education, experience and behaviour. One without the other is not a sustainable model.”
Since August, the government has released two tranches of its Future of Financial Advice reforms, its response to the Cooper review in the form of the Stronger Super reforms, and specific draft legislation on MySuper.
On 21 September, Financial Services and Superannuation Minister Bill Shorten announced the Stronger Super reforms.
Henry Davis York partner, specialising in superannuation, Anne MacNamara said the timing outlined in the MySuper draft legislation could be a concern for the industry.
“The window I think is going to be quite tight for offers of MySuper products. Effectively they are going to have to be ready to go, have their approvals lodged and hopefully approved by APRA (Australian Prudential Regulation Authority) if not prior to 1 July 2013 [then] to have at least lodged the application prior to that date,” MacNamara said.
The FSC has more than 130 members who are responsible for investing more than $1.8 trillion on behalf of 11 million Australians. It represents retail and wholesale funds management businesses, superannuation funds, life insurers and financial advisory networks.
The FPA has around 11,000 members, including almost 6000 certified financial planners.
Through individual members and relationships with licensees, the AFA represents more than 7000 members.
