The Financial Planners and Advisers Code of Ethics 2019 (Code of Ethics) is a set of standards and core values designed to encourage higher standards of behaviour and professionalism for financial advisers.
The Code of Ethics was developed by the Financial Adviser Standards and Ethics Authority (FASEA) as part of the professional standards for financial advisers. The responsibility for developing the Code of Ethics is now with the Minister.
The Code of Ethics is a legislative instrument. Section 921E of the Corporations Act 2001 (Corporations Act) requires financial advisers to comply with the Code of Ethics.
For compliance dates for financial advisers and Australian financial services (AFS) licensees, see Timeline for the reforms.
Ethical standards
The Code of Ethics establishes 12 high-level ethical standards for financial advisers to meet, including:
- acting in the best interests of clients
- avoiding conflicts of interest
- ensuring that clients give informed consent and understand the advice they receive
- ensuring that clients clearly agree to the fees they will pay
- maintaining a high level of knowledge and skills.
Bridging courses
As well as complying with the Code of Ethics, all financial advisers who are existing providers and new financial advisers must do the Code of Ethics bridging course. This course can be done separately or as part of an approved degree: see Treasury's Financial Adviser Standards website for approved degrees.
