FPA unveils world first Code of Professional Practice

19 November 2009

The Financial Planning Association of Australia (FPA) has set a world first for the financial planning profession, unveiling its Code of Professional Practice (the Code) today at its 2009 National Conference in Melbourne.

FPA CEO, Jo-Anne Bloch said the FPA is the first financial planning professional association in the world to launch the full suite of professional regulation that incorporates a set of ethical principles, a complete set of practice standards and the full range of professional conduct rules that explain and underpin professional financial planning practice.

Ms Bloch said the Code is a streamlined set of many other FPA obligations. It has been developed with active member consultation over the course of the last 2 years, and it presents many benefits for both consumers and FPA members.

“This Code is as much for the community as it is for FPA members. It explains the process of financial planning and sets a benchmark for ethical behaviour and quality practice,” Ms Bloch said.

“It lists in detail the practices and obligations of financial planning for FPA members, provides a framework for newcomers, and offers clear accountabilities for key stakeholders such as the Financial Ombudsman Service (FOS) and even ASIC, who could use the Code as an adjunct to their own regulation to determine a benchmark for financial planning in Australia.

It also provides clarity about ways to better align practices with the differing advice needs of clients and encourages a financial planning process that revolves around delivering quality advice.

“Perhaps most importantly, for many members, the Code improves the FPA and the community’s capacity to identify inappropriate practice and respond accordingly,” Ms Bloch noted.

The FPA’s Code aligns with global standards and expectations as set out by the Financial Planning Standards Board (FPSB) which is the licensing body for the Certified Financial Planner program. This means that consumers, FPA members and other stakeholders can be confident in the integrity of these standards and know that it represents globally agreed best practice.

“Streamlining our suite of professional regulation has been a long process and members have provided great feedback throughout the process,” Ms Bloch said.

“I want to particularly note the contribution of our Board Professionalism Committee and Professional Conduct Committee, and John Rappell from Emergence Consulting, who under the stewardship of Deen Sanders and John Bacon at the FPA have spent an inordinate amount of time ensuring that we get everything right.”

Implementation of the Code of Professional Practice will begin immediately. Whilst much of the content will be familiar to members, members are encouraged to review the full suite of standards and consider how it will affect their business and advice processes.

Education and tools are in the pipeline and a communication and education timetable will be released in early 2010.

“This is a proud moment in Australian financial planning history,” Ms Bloch continued.

“FPA members deserve appropriate recognition and should clearly capitalise on this in their communication with clients.”

The Financial Planning Association of Australia is the leading Professional Association for financial planners and is committed to improving professional standards, as well as confidence and trust in the financial advice provided by a member of the FPA.

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Note to journalists

The Financial Planning Association of Australia (FPA) is the peak professional body for financial planning in Australia. The FPA has an office in each capital city and a network of 31 Chapters across the country, which provide a focus for business networking and professional development activities for more than 12,000 members. FPA practitioner members manage the financial affairs of more than 5 million Australians whose investments are valued at $630 billion.