The Association of Financial Advisers (AFA) has launched a consultation paper on a new code of conduct – the AFA Principles of Practice.
AFA CEO Richard Klipin said the regulatory change agenda has resulted in an increase in the importance of codes of conduct and the AFA is clearly out to impress the regulator.
“A robust and meaningful code of conduct is a core part of the move towards a higher level of professionalism,” says Klipin. “We felt the tides of change last year and so began our work on the AFA Principles of Practice.”
The AFA is now calling for member feedback on the draft code.
Elements of the AFA Principles of Practice will be discussed at the association’s national roadshow this week.
Special guest speakers at the events in Sydney and Melbourne include Senator Mathias Cormann and ASIC Senior Manager, Nick Coates.
Klipin says the AFA will further review its code – and seek further member consultation – after ASIC releases its guidelines later this year or early in 2013.
“Our research shows us that consumers who receive financial advice highly value the advice they are given, are happier with their investments and have greater peace of mind than those who are trying to navigate the complex world of investment and insurance without the help of a financial adviser,” he says.
“We need to build on that so that more people understand the power financial advice has to transform their lives.
“Enhancing codes of conduct and encouraging higher levels of adviser education and qualifications will go a long way towards improving consumer understanding of the value of advice and inspiring greater trust in the profession as a whole.”
The regulator has indicated that regulatory guidance on codes of conduct will be finalised at the end of the year.
“We expect the whole process on code approval to take at least 12 months,” Klipin says.
“However we want to start the dialogue with members now so that we are well positioned by the time it gets serious.”
The AFA Principles of Practice can be viewed by clicking here.
Submissions are requested by August 31, 2012 and should be submitted to info@afa.asn.au.
