ASIC deputy chair Peter Kell said compliance with the incoming adviser code of ethics (being introduced as part of the incoming education and training standards) will be a “key component” of professionalism of the industry.
“Monitoring and enforcing compliance with the code of ethics is a significant responsibility that will be resource intensive for the bodies that take on this role,” Mr Kell said.
“The compliance scheme framework is key to the successful operation of the proposed code of ethics, which must have the greatest possible influence on the behaviour of financial advisers.”
Compliance with the code will be overseen by ASIC-approved compliance schemes, the regulator said, and will need to be “robust, transparent, fair and consistent” to be effective.
The consultation paper for ASICs proposed approach to approving and overseeing compliance schemes for financial advisers can be read here, and submissions can be made until 28 June 2018.
Start prosecuting and incarcerating those who break the current laws and you’ll be amazed at how memorable the ethics training will become to all levels of the fin service org’s. Proposing more ethics training while enforcement / prosecution are absent is not any kind of solution; it’s part of the growing and unrectified problem.
this is the root of the problem. what does it take for a corporate criminal to go to prison. unless that process to incarcerate corporate criminals is not addressed, the problem with ethics will persist. as far as the crims go, they cannot go to prison so they keep on trying it on
the court system is a farce, and the punishment not in line with community expectations.
if punishment were harsh, people’s behavior would change very quickly
Royal Commission will = zero CEO or management prosecutions, I bet.
Imagine a day when the CEO’s and managers of the institutions actually face a reasonable chance of getting busted, maybe all the regulatory red tape can be decreased.
Chance of it happening = NIL
Instead, they will keep attacking the Advisers as the easiest targets to lump all the blame on.
For those who have completed ethics courses–CFP – CPA – TPB, I wonder how ASIC or anyone can enforce another ethics course which does not presently exist, lecturers able or qualified otherwise don’t exist and the proposed course will probably be a rehash of the above but at a cost. Another example of “someone” appearing to have done the right thing but in reality will have done ZERO to improve advice
There is an organisation that specialises in providing ethics courses at a cost. Their CEO, who derives a living from ethics training, is on the FASEA Board. FASEA has decreed all other ethics courses worthless, and is insisting planners who have completed those other courses do an additional “FASEA endorsed” ethics course.
It’s not just the university lecturers on the FASEA Board who have a blatant conflict of interest.
I just love how yet another Govt dept created to manage Red Tape for the industry. Just keep adding the costs to the end consumer…
Ethics is a large subject area as it applies to the like of – Life insurance, Superannuation, Managed Investments, tax .. to name a few.
I would love to see our Aussie Politicians do a ethics course………
Let’s just start with the politicians being ethical.
Good luck with that one…
O’Dwyer and Ethics, mmmm interesting concept Hey Kelly