Based on feedback received on Standard 3 during the consultation process conducted on its code of ethics, FASEA said on Wednesday (3 November) it is considering amending the wording of the contentious standard to align it to its intent.
“The code of ethics provides an ethical framework of values and standards to assist advisers in exercising their professional judgement in the best interests of their clients.
“FASEA understands that some stakeholders have raised concerns regarding the wording of Standard 3 and welcomes stakeholder feedback on proposed options to align the wording of the standard with the intent of the standard,” FASEA chief executive Stephen Glenfield said.
The options FASEA is consulting on include:
In June, FASEA revealed it had received 37 submissions to its code of ethics guidance, a majority of which had pointed to the urgent need to refine the wording of Standard 3.
“Standard 3 received particular comment with a broad range of suggestions made including [to] retain the standard as is, incorporate the wording and intent from the draft guide into the standard to give it legal application, incorporate a reasonable person and materiality test into the standard, revert to the original wording of the standard re inappropriate advantage, [or] change the standard to provide for a disclose and manage approach,” FASEA said at the time.
All feedback and submissions can be submitted through FASEA’s dedicated consultations email consultation@fasea.gov.au until 1 December 2021.
