The FPA released proposed revisions to the current Code of Professional Practice in October, opening a six week consultation period requesting feedback from members and other key stakeholders. The existing Code was drafted in 2009.
 
FPA General Manager, Policy and Standards, Dante De Gori said the professional body received a great response from the FPA community and financial services industry.
 
“This is a Code for all FPA members; therefore we have encouraged feedback from the FPA community to assist in shaping this updated Code and, in turn, their professional futures. The response we received highlights that this is an important subject for our membership and we believe that it will address some of the challenges posed by FoFA and support our members through that process.
 
“The FPA also had great participation from key stakeholders including ASIC, FOS, the licensee community and key consumer groups including Choice. In addition, we continue with our ongoing engagement with the Government and the Opposition, discussing our proposals for the new FPA Code.
 
“We look forward to launching an updated Code that will provide a full solution for all professional financial planners and their clients,” said Mr De Gori.
 
The association anticipates obtaining FPA Board approval on final changes to the Code early next year.  It will then submit the revised Code to ASIC for approval. In the meantime, the FPA is also developing a range of educational webinars, user guides, videos and other practical resources to serve its members beginning in November. The materials provide support on use of the Code of Professional Practice in the lead up to the 1st July 2013 FoFA implementation deadline.

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This evolution is in line with the Future of Financial Advice (FoFA) reforms and the ASIC’s RG183 – Consultation Paper 191 Future of Financial Advice: Approval of codes of conduct for exemption from opt-in requirement – released 23 October 2012.
 
The FPA Code of Professional Practice in its current form was launched in 2009 and remains the only full suite of professional regulations, incorporating ethical principles, practice standards and conduct rules for financial planners in Australia.
 
FPA General Manager, Policy and Standards, Dante De Gori said that the professional body is welcoming the opportunity to support members with an enhanced Code of Professional Practice that solves the challenges posed by FoFA through a robust set of additional principles to guide appropriate behaviours and practices in the provision of advice.
 
“While the Code contains fundamental principles and standards that endure over time, it also makes sense to evolve the Code to take into account the changing environment.  The modifications we are proposing will ensure that the Code is the full solution for financial planners and their clients, while standing the test of time long after the FoFA reforms are a distant memory,” said Mr De Gori.
 
The proposed changes take into account the four key elements of the FoFA reforms (Opt-in, Best Interests Duty, Scaled Advice and Conflicted Remuneration), as well as the criteria contained in the ASIC consultation paper (CP191) released today on approving Codes of Conduct, in particular the requirements for class order relief from obviating the need to comply with opt-in.
 
On the consultation paper (CP191) Mr De Gori commented, “The FPA will be providing a separate full submission, including member feedback, in response to the ASIC consultation paper.  We are confident that the changes we have proposed in our Code of Professional Practice consultation paper are consistent with, and meet the requirement of, the proposals in the ASIC RG183 paper.”
 
Mr De Gori believes the evolution of the FPA’s Code of Professional Practice is a key part of the ongoing effort by the FPA to transition financial planning into a universally respected profession and grow consumer trust and confidence in financial planning.
 
“Our members’ commitment to the Code is what sets them apart from other financial planners.  The prospect of a future in which professional regulation works in conjunction with legal regulation is bound to result in better advice outcomes for consumers,” said Mr De Gori.
 
The FPA will accept feedback and submissions on their consultation paper for six weeks and during this time will undertake extensive consultation with a range of stakeholders.
 
“This is a Code for all FPA members; therefore, members will have a range of ways to provide their feedback to these proposed changes given it will help shape their professional futures. In addition, we will continue our ongoing engagement with other key stakeholders such as Minister Shorten’s office, Treasury, the Opposition, ASIC, FOS, the licensee community and other consumer groups and industry associations,” said Mr De Gori.
 
The FPA Code of Professional Practice consultation period ends on 30th November.  The Association anticipates obtaining FPA Board approval on final changes to the Code early next year.  Then, it will submit the revised Code to ASIC for approval.  In the meantime, the FPA is also developing a range of educational webinars, user guides, videos and other practical resources to roll out to members starting in November to support them on how to use the Code of Professional Practice in the lead up to the 1st July 2013 FoFA deadline.
 
To see details of the FPA Code consultation, click here.

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