It’s pretty common knowledge some financial planners – I stress some, definitely not all – have struggled in the past to put the best interests of their clients before their own.
In the wake of the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry some changes have been made to the conduct and ethical standards applying to Financial Planners. It’s probably been long overdue given the way the banks have used aligned financial planners to distribute their products over the years.
The standards are governed by the Financial Standards and Ethics Authority (FASEA). The 12 ethical standards are:
- Act in accordance with all applicable laws
- Act with Personal Integrity
- Do not advise or act to derive inappropriate personal advantage
- Act only on the basis of the consent of a client
- Ensure advice is in the clients best interest and that the client understands
- Consider the effects of the advice provided
- Obtain informed consent to all benefits and in accordance with Corporations Act 2001
- Maintain complete and accurate records
- Ensure the advice is offered in good faith
- Maintain a high level of relevant knowledge and skills
- Cooperate with ASIC and Code Monitoring Bodies in investigations
- Uphold and promote the ethical standards of the profession
Of course there are thousands upon thousands of words behind each of the standards but the meaning is clear. No longer will financial planners be able to recommend products and advice that aren’t in the best interests of the client no matter how they dress it up.
It’s great news for the industry and the clients we serve.
If you would like to discuss these ethical standards further, give the team at Steve May a call and start a conversation today.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
