FASEA consults on changes to Code of Ethics Standard 3

AFA News 4 November 2021. Yesterday FASEA released a long-awaited consultation paper on potential changes to Standard 3 of the FASEA Code of Ethics.  The AFA warmly welcomes this process, which we hope will lead to a workable solution that the advice profession can adopt and support.

In responding to a question on Notice from WA Liberal Senator Slade Brockman on Standard 3 of the Code of Ethics, FASEA advised in late May 2021 that they intended to consult on potential changes to Standard 3 on Conflicts of Interest and Duty.  This Standard has been a point of contention ever since the Code of Ethics was released in February 2019, and a matter where ASIC stepped-in in late 2019 to confirm that they would apply a facilitative compliance approach.

In their consultation paper, FASEA has set out three options.  In addition to the option of retaining the existing wording, which the AFA obviously does not support, FASEA has presented two alternatives for feedback:

  1. You must only advise, refer or act where you do not have a conflict of interest or duty, being that which could reasonably be expected to induce you to act other than in the client’s best interest.
  2. You must not receive any benefit (whether monetary or non-monetary), nor enter into any relationship, that could reasonably be expected to influence the advice you give or the service you provide to your client.

Please click here for a copy of the FASEA Consultation Paper.

We welcome any feedback from members on this paper and the alternative wording for Standard 3.  Please email any feedback to policy@afa.asn.au.

Issued 04.11.2021. AFA Policy & Education Update