The AFA has consulted members on whether it should begin publicly disclosing the names of advisers reprimanded for ethical breaches as it revises its own code of conduct.
In his address to members at the Sydney leg of the Genxt Conference yesterday, AFA chief executive Brad Fox noted that the association already reports all of the complaints received and its findings as a group under the Tax Practitioners Board regime.
However, he polled members about whether the AFA should start individually naming advisers and adopt a stance of publicly naming and shaming those who breach its revised code of conduct.
“Another choice that we're going to have to make as an association is how we produce our results under this code,” Mr Fox said.
“This is really vital information for our code working group. These are things that are going to shape us.”
The poll results revealed that around 62 per cent of respondents said the AFA should name and shame for only major breaches of the code, 4 per cent said name and shame for every breach, 20 per cent said never name and shame, while 12 per cent said they were unsure.
Under the Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016, a new code of ethics will be established by a newly formed standards-setting body, which is slated to begin operating by 1 July 2017.
Mr Fox said the new code of ethics must be inserted verbatim into the AFA's revised code of conduct following the passing of professional standards legislation through Parliament.
The move comes as the FPA has handed a $16,000 fine and expelled a member from its ranks, a move which has sparked considerable debate from ifa readers.
In January, ifa asked FPA chief executive Dante De Gori whether its decision to announce via press release misconduct by two of its former members was a change in strategy by the association.
“No,” Mr De Gori replied by email, without any further elaboration.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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