March, 31, 2010

A draft code of professional conduct for authorised financial advisers released on Wednesday is a significant milestone in lifting the industry's professionalism, says Commissioner for Financial Advisers David Mayhew.The code specifies the minimum standards of professionalism that investors can expect of their financial advisers including competence, knowledge and skills, client care, ethical behaviour and continuing professional training.

The commissioner expected to receive the final draft code in June for approval and subsequent recommendation to the Minister of Commerce."Release of the draft code will also assist businesses that employ financial advisers to decide whether they have the capacity to be qualifying financial entities," Mr Mayhew said.The entities are eligible for streamlined regulatory arrangements but must ensure their advisers operate professionally by reference to standards equivalent to those contained in the draft code.

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