The FPA is undertakeing a review of its Code of Professional Practice in light of the federal government’s advice reforms gaining passage through the lower House of Parliament.
FPA chief professional officer Deen Sanders told InvestorDaily the advice association was in the process of reviewing its codes.
“We are certainly reviewing the code now as to how it may need to be modified or expand upon in relation to FOFA [Future of Financial Advice],” Sanders said.
The review was being undertaken as a matter of professional practice, and not linked to any eleventh-hour details stemming from the advice reforms, he said.
“That is an activity that we are doing anyway as we should, and as any professional body should do. It’s an activity that is happening at the same time,” he said.
Sanders revealed details of the review after being asked whether the FPA would anticipate altering its codes after lodging its Code of Professional Practice for approval to ASIC on the 16 February 2012 – well ahead of FOFA’s Lower House passage.
“ASIC will take their appropriate time to review [the application],” he said.
“At this stage they haven’t provided us with dedicated advice as to how long that process will take or what steps need to be engaged in. But certainly we’ve met with them on a number of occasions.”
Late last month, Australia’s advice industry was handed a series of concessions regarding the opt-in clause, with Financial Services and Superannuation Minister Bill Shorten watering down the FOFA reforms.
Under the amendments, opt-in, which requires planners to re-sign contracts with their clients on a regular basis, will not be required where a planner is a member of a professional body.
It will also not be required where the advice body has an approved professional code of conduct, and where ASIC has provided a class order excluding them from the requirement.
As reported in March, the lower house of Parliament passed FOFA reforms after independent member of Parliament Rob Oakeshott drafted an amendment to the contentious opt-in requirement, reversing his own vocal opposition to the measure.
The House of Representatives passed the amended Corporations Amendment (Future of Financial Advice) Bill 2011 by a vote of 60 to 56. It will next go to the Senate.
Financial Services Minister Bill Shorten presented 18 amendments to the first and second tranches of FOFA but, as expected, opt-in spurred the most robust debate.
