A key part of the new regulatory regime, the Code of Conduct sets standards of competence, conduct and client care for the financial advice industry.
The code imposes statutory duties on anyone giving regulated financial advice to retail clients, requiring them to:
- comply with prescribed standards of ethical behaviour, conduct, and client care
- meet standards of competence, knowledge, and skill (including any continuing professional development requirements).
The 2-year transitional licensing period will allow financial service providers the time to familiarise themselves with the requirements of the code, and to comply with them.
The code includes commentary to help persons who give financial advice to comply with the standards.