The regulator has existing power under the Corporations Act to approve codes of conduct, with Regulatory Guide 183 (RG 183) setting out ASIC's minimum expectations on the area.
Consultation Paper 191 Future of Financial Advice: Approval of codes of conduct for exemption from opt-in requirement (CP 191) sought feedback on how RG 183 should be amended for FOFA.
CP 191 is relevant to advisers and industry representatives who are considering submitting either a new or existing code for approval, ASIC said.
The paper covers appropriate content of a code, administration, governance, monitoring and enforcement of codes and ASIC's approval and relief process.
However, membership of a code should not be seen as an easy option for compliance, ASIC commissioner Peter Kell said.
"Obviating the need for opt-in via subscribing to a code does not mean financial advisers will suddenly have no responsibility or obligations in this area.
"We expect codes will contain provisions that require members to have active obligations towards their clients that will achieve the same outcome as the opt-in requirement intends to achieve. That is, prevent disengaged clients from paying ongoing advice fees for services of little or no value."
In addition, ASIC would take a facilitative approach during the first 12 months of the FOFA reforms from 1 July 2013.
"ASIC recognises in a number of areas that FOFA will require businesses to undertake major work so that IT systems and compliance requirements are in place for the new regime," Mr Kell said.
"Our aim is to smooth the path of FOFA implementation for financial services firms."
ASIC will consider applications for approval of a FOFA code once final policy is published in RG 183.
It will take ASIC months rather than weeks to assess a code, noting that unless a licensee opts-in to the FOFA regime before 1 July 2013, the earlier date an adviser would need to comply with the opt-in requirement or join an approved code is 1 July 2015.
Submissions to CP 191 close on 3 December 2012.
The FPA will be providing a separate full submission on the paper, including member feedback in response to CP 191.
The industry association announced proposed revisions to its Code of Professional Practice yesterday in order to evolve the professional standards of members in line with FOFA and ASIC's CP 191.
"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," FPA general manager policy and standards Dante De Gori said.
The FPA Code of Professional Practice consultation period ends on 30 November.
