Industry associations say the vast majority of fund managers, dealer groups and financial planners are now declaring soft dollar payments but warn they will continue to crack down on businesses that flout their obligations.
The FPA and Investment and Financial Services Association (IFSA) investigated its members late last year and found most adapted well to the disclosure regime under their alternative forms of remuneration (soft dollar) joint code of practice which was adopted two years ago.
Members must now declare gifts, entertainment, travel and other payments over $300 given by a third party - product manufacturers, fund managers, platforms or research houses - and make the register available to the public.
The code aimed to stamp out biased advice and raise consumer confidence. ASIC reported in 2004 that a wide range of benefits such as cash bonuses, share options and overseas trips were being given to financial planners to increase product sales and entice planners to sell a particular, a practice which has now been banned.
Many financial planners are now declaring everything they receive, even if it's under the $300 threshold, FPA chairwoman Corinna Dieters said.
"The code certainly has seen a change in behaviour across the board," Dieters said.
"The key point from our perspective is [the code is] working well and we'll continue to provide guidance where necessary and take feedback from members."
The associations have clarified areas of confusion in the code, in particular reinforcing the requirement that members should hold 'nil' registers, even if the business does not have alternative forms of remuneration.
Compliance with the code is monitored through face to face visits and annual self-assessments.
"This joint IFSA/FPA assessment was important to establish that the code doesn't warrant extensive overhaul," IFSA chief executive Richard Gilbert said.
