Code flashes amber, consultation ahead
The final sign-off of the AFA Code of Professional Conduct will face further delay as a result of the proposed changes to the Financial Service Providers (Pre-Implementation Adjustments) bill, according to Code Committee chairman, Ross Butler.
Friday, June 11th 2010, 4:24PM
by David Chaplin
The Code, which was originally due to be finalised in the first quarter of this year, would now require a "short period of targeted consultation" after the new amendments were introduced, Butler said.
"[The Code Committee] is meeting on Monday [to discuss the implications]," he said. "Our intention is that the moment the legislation goes through - which should be in a couple of weeks - we'll need a quick round of consultation."
Butler said while the further consultation may push out the final approval of the Code, that would not flow into the other parts of the regulation timetable - the December 1 registration date or the July 1, 2011 full start deadline for the adviser regulatory regime.
He said many advisers have already begun their training to meet the regulatory standards, which should not be majorly affected by the latest proposals.
The biggest hold-up would be finalising Standard Set B of the education standards that covers knowledge of the Code.
"Advisers would be crazy to leave everything to the last minute," Butler said.
He said it was unclear yet whether many insurance advisers would choose to opt out of the AFA process as a result of the proposed carve-out in the Pre-Implementation bill that limits the ‘financial planning service' definition to investment advice only.
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