Financial Advisers Code of Ethics 2019: Standards & Professional Values

Under which act is the Financial Planners and Advisers Code of Ethics established?

The Corporations Act 2001.

What does the term 'benefits' include according to the Code?

Both monetary and non-monetary benefits, excluding any fixed component of remuneration.

What are the five core values that financial planners and advisers must demonstrate?

Trustworthiness, competence, honesty, fairness, and diligence.

What is Standard 1 of the Ethical Behaviour section?

You must act in accordance with all applicable laws and not try to avoid or circumvent their intent.

What does Standard 2 require of financial advisers?

To act with integrity and in the best interests of each client.

What does Standard 3 prohibit?

Advising, referring, or acting in any manner where there is a conflict of interest or duty.

What is required for client care according to Standard 4?

Acting for a client only with their free, prior, and informed consent.

What must all advice and recommendations be according to Standard 5?

In the best interests of the client and appropriate to their individual circumstances.

What does Standard 6 require financial advisers to consider?

The broad effects of the client acting on the advice and their long-term interests.

What does Standard 7 state about client consent?

Clients must give free, prior, and informed consent to all benefits received in connection with acting for them.

What is prohibited under Standard 7 regarding third-party benefits?

Receiving benefits from a third party other than the principal, except where expressly permitted by the Corporations Act 2001.

What must fees and charges be according to Standard 7?

Fair, reasonable, and represent value for money for the client.

What does Standard 8 require regarding client records?

Records must be kept in a form that is complete and accurate.

What does Standard 9 state about advice and products?

They must be offered in good faith, with competence, and be neither misleading nor deceptive.

What is required by Standard 10 in terms of professional commitment?

Developing, maintaining, and applying a high level of relevant knowledge and skills.

What does Standard 11 require regarding cooperation with ASIC?

Cooperating with ASIC and monitoring bodies in any investigation of a breach or potential breach of the Code.

What is the focus of Standard 12?

Upholding and promoting the ethical standards of the profession and holding each other accountable for public interest protection.