Financial Adviser Standards and Ethics Authority (FASEA) Code of Ethics: Who Qualifies and What You Get
A guide to the professional standards and ethical requirements for financial advisers in Australia.
This scheme provides a mandatory framework of professional standards and ethical conduct designed to govern how financial advisers must behave while practicing.
Who it's for
This framework is designed for all active financial advisers. If you are currently working in the financial advice sector, you are required to adhere to these standards to maintain your professional standing.
What you get
By following this framework, advisers receive a clear set of professional standards and ethical conduct rules. This provides a structured way to ensure that all advice is given according to a high level of integrity. It sets out the expectations for how advisers should interact with clients and how they should manage their professional responsibilities to ensure the industry maintains high standards of ethical behavior.
What it costs you
Compliance with these standards is not free. To meet the requirements, advisers must undergo a mandatory exam to demonstrate their understanding of the ethical framework. Additionally, there is a time and resource commitment required for ongoing professional development. You must participate in continuous learning and training to ensure your knowledge remains current and that you continue to meet the professional standards required by the authority.
The catch to know
It is important to understand that this Code of Ethics is not just a set of guidelines; it is legally binding. This means that any breach of these ethical standards is a serious matter that can be reported to the Australian Securities and Investments Commission (ASIC). Because the rules have legal weight, staying compliant is essential for your professional career.
How to apply
- Verify that you are classified as an active financial adviser within the industry.
- Prepare for and successfully complete the mandatory professional exam required by the standards.
- Establish a process to participate in the ongoing professional development required for your role.
- Ensure your daily conduct aligns with the ethical framework to avoid reporting to regulatory bodies.