AMP, Macquarie Bank, ANZ, CBA and BT Financial Group are among those to have funded the initiative.
The program was developed by The Ethics Centre to “enable participants to see situations more clearly, adopt different decision-making approaches and better understand clients, customers and colleagues’ perspectives to achieve mutual outcomes”, a statement from the organisation said.
The Ethics Literacy program – which from August will be rolled out to individuals responsible for financial advice – will include a combination of workshops, coaching and online learning and discussion to inspire ethical decision-making, the statement said.
AMP group executive of advice and banking Rob Caprioli said, “AMP, along with many other organisations across the industry, recognises what a critical time this is for the industry and how important it is to increase trust among consumers in financial advice.
“By helping to raise the education, ethical and professional standards across the industry, the Ethical Literacy program is an important step in ensuring ongoing high standards of professionalism across the industry.”
The Ethics Centre’s principal consultant, John Neil, noted, “The Ethics Centre is working with financial institutions, professional associations and regulators to develop the program as a common source of ethics education for the Australian financial advice industry as a whole.
“Through support from industry and Australia’s major financial institutions, coupled with the experience and reputation of The Ethics Centre, we have no doubt that the program will encourage a strong ethical foundation and positive cultural change for the financial advice industry,” he said.
The Australian Prudential Regulation Authority, Australian Securities and Investment Commission, Association of Financial Advisers, Financial Planning Association, SMSF Association, Financial Services Council and the Australian Bankers’ Association are overseeing the program’s development.
This hypocrisy makes me feel physically ill.
Well this is hilarious!!! Imagine the banks and AMP telling US to be ethical. Talk about the pot calling the kettle black. The sheer arrogance of these organisations having the gall to pretend it is advisers who lack the ethics is a sick joke.
And ASIC’s recent fawning over a start up advice company run by accountants proves they also lack ethical understanding. Dont even get me started on AFA and FPA recent behavior with relation to risk commissions. No wonder the industry is falling apart, the self interest of these organisations is disgusting.
Guys Ill save you heaps of coin , get rid of vertical integration and product commissions. Done problem solved no more window dressing !!!!!!!!!!!!!!!
I respect the intent of the big organisations with this but to be critical its little more than a PR stunt. I have had the privilege of working with a broad spread of quality advisers over a couple of decades and almost every one has an ethical standard higher than some of the promoters of this initiative. In fact making it compulsory is degrotitory to our good advisers. And good advisers are in both IFA and VI channels.
What really needs to be done is the licensees ( not all licensees as some are excellent ) need to act far far better under their legal requirements to supervise and train and actually identify and work with the problem advisers. Stop protecting them just because they support their product or in some cases because they have been with the licensee for so long that outing the adviser could reflect poorly on past licensee governance.
So AMP, recognises what a critical time this is for the industry, and the response is to [b]inspire[/b] ethical decision making?
Who are we trying to kid?
Why do we so conveniently fail to apply behavioural economics principles when it comes to managing the industrys own behaviour?
How about making some hard, structural decisions and separating product from advice?
And the problem becomes the supporter.
Big Banks caused the majority of the problems and now they want to talk about ethics after what they have done to the reputation of the industry and to increase the burden onto good already ethical and moral advisers.
Please…. this makes me sick
Maybe the big bank executives should do the Ethics program. Just a thought!