Call to add reasonableness standard
The revised draft of the new code was released this month, and submissions on it closed last week.
Among the changes made to the code were moves to make it clearer that code standard one – the requirement that advisers act in clients’ best interests – was the overriding concern, and changes to code standard five, regarding conflicts of interest, which simplifies rules around any conflicts that might arise.
Advisers are required to identify and clearly and effectively communicate to their client all of their, or a related person’s, interests that might influence the services they provides to the client.
Where a conflict of interest is such that an AFA is unable to place the interests of the client first, the AFA must decline to act.
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