Draft Financial Advice Code submitted to Minister
The Financial Advice Code Working Group (CWG) today submitted a draft Code of Professional Conduct for Financial Advice Services (Code) to the Minister of Commerce and Consumer Affairs (Minister) for consideration.
The new version of the Code (as submitted) is not yet available. The previous draft of the Code and Working Group updates are available here.
Who does this affect?
All financial advisers, and any business which provides financial advice. The Code will provide much of the detail around the regulation of financial advice under the incoming Financial Services Legislation Amendment Bill (Bill).
What does it cover?
The Code provides for minimum standards of professional conduct when regulated financial advice is given to retail investors. It is to operate alongside the new regime that is to be introduced by the Bill. Our discussion of the previous draft of the Code, including the related consultation paper, can be found here.
The Minister must approve the Code for it to come into effect, which will only occur once the Bill has been passed. The timing of this will drive the exact dates for implementation of the incoming financial advice regime.
Once the Bill is finalised and the Code approved, the CWG will publish the Code together with an impact analysis and a summary of submissions. The Code will not come into force for at least nine months after approval. This will be followed by a two-year transition period to allow existing advisers to move into compliance with the new standards.
If you have any questions in relation to the Code or are considering how these changes may affect your business, please contact one of our experts.
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