The Australian Securities and Investments Commission’s (ASIC) consultation into professional codes of conduct that will obviate the need to comply with opt-in found particular interest in entity specific codes.
ASIC commissioner Peter Kell has said the three most prominent issues raised in the code of conduct consultation were whether entity-specific codes be allowed, if ASIC should consider more narrowly focused codes just dealing with opt-in, and what content a code would need to contain that would actually obviate the need for opt-in.
Mr Kell said that “in most cases” a code sponsor would be an industry association, opening the door for larger dealer groups and institutions to potentially implement their own codes to circumvent opt-in.
ASIC is currently on track to release additional regulatory guidance papers on ASIC’s approach to professional codes of conduct and also on conflicted remuneration in the next few weeks, he said.
Mr Kell said that prior to the codes of conduct consultation, ASIC expected some stakeholders would be “underwhelmed” by the examples provided in the consultation paper and that those expectations had been realised – “but we wanted to hear from the industry how they wanted to demonstrate that they were providing ongoing advice that clients were prepared to pay for,” he said.
“In the final paper we will be proposing a more detailed checklist that we’re confident the industry will find to be useful and helpful,” he added.
Commenting on ASIC’s new enforcement powers, Mr Kell said for too long it had been too easy to get into the industry, and too difficult for regulators to take someone out.
Aside from Future of Financial Advice changes, there are a range of other issues the regulator is looking to engage with the industry on this year. These include studying online advice delivery and how firms monitor and supervise employees, which is fundamental to ensuring consistent advice.
ASIC is also looking at how breaches are reported by the industry to the regulator, Mr Kell said.
