The corporate regulator has revealed guidance on its proposed approach to approving and overseeing compliance schemes for financial advisers.
The financial advice professional standards reforms include obligations for financial advisers to, from 1 January 2020, comply with a code of ethics and be covered by an ASIC-approved compliance scheme under which their compliance with the code of ethics will be monitored and enforced, ASIC said in a statement.
The code of ethics is being developed by the Financial Adviser Standards and Ethics Authority. Consultation on an exposure draft of the code of ethics released by FASEA closed on 1 June 2018.
ASIC pointed to RG 269, which explains its process and criteria for determining whether to grant approval to a compliance scheme. It also sets out:
ASIC deputy chair Peter Kell said it is committed to ensuring robust, transparent, fair and consistent compliance schemes that effectively monitor and enforce compliance with the code of ethics.
“Effective compliance schemes are a key component of the reforms that will require higher standards of ethical behaviour and professionalism among financial advisers,” Mr Kell said.
“Our guidance requires high standards for compliance schemes, reflecting the significant responsibility that monitoring bodies operating compliance schemes will have. This includes the responsibility to effectively monitor and sanction adviser members if required.”
At this time, FASEA has not released the final code, ASIC said. If there are significant changes from the draft code, ASIC noted it may revise its guidance when the final code is released.
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