Register  
Details still needed on opt-in: ANZ Wealth
Friday, 23 March 2012 11:50am

The devil will be in the detail of the new requirements on opt-in according to ANZ Wealth, with a number of issues still to consider.

The government yesterday released its amendment to the FOFA legislation relating to the controversial requirement, which gives ASIC the power to exempt an adviser or dealer group from opting-in.

Under the new legislation, the regulator "may exempt a person, or a class of persons, from section 962K (the opt-in requirement), if ASIC is satisfied that the person is, or persons of that class are, bound by a code of conduct approved by ASIC".

It is up to ASIC to decide whether the code of conduct is acceptable and the regulator must then publish notice of the exemption in the government Gazette.

Paul Barrett, ANZ Wealth general manager, advice and distribution, said there are two key issues to consider.

"One is the detail- does a professional code of conduct have an in-built opt-in in it anyway...will that be a requirement? Also, what will ASIC's interpretation be?" queried Barrett at a media briefing in Sydney yesterday.

"If ASIC has a view that meeting a professional code of conduct should include some form of opt-in, what relief from opt-in is there really? That's the level of detail we need to see before we pass our final views on this."

Barrett said the clause also raises the question of who can form a professional association in the first place, in so far as who meets the requirements.

"Putting the obvious issues like FPA versus the AFA to one side for a moment, having a professional code of conduct in a profession is intuitively a good thing, so I don't think anyone can really knock the logic around having a professional code of conduct," said Barrett.

"What do you have to do as a practitioner to meet the code of conduct and that needs to be worked through, and I imagine ASIC will have a very strong view on that as well. So we need to firstly acknowledge that this could be a good thing, but until we get involved with the detail it remains to be seen."

Barrett said he thought a professional body would have to have the adequate resources to be able to execute, implement, monitor and supervise a code of conduct.

And he said ANZ Wealth was currently focused on how to implement opt-in.

"We're looking at how you physically implement this ... and it's not just a case of training advisers, it's a case of getting them the technology and process."

The most recent Investment Trends planner business model report showed only 18% of planners did not belong to a professional organisation, with 41% saying they were a CFP member of the Financial Planning Association (FPA).

88% of planners surveyed also said they were in favour of restricting the term "financial planner" to include only those who met clearly defined levels of qualifications and professional standards.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Breaking out from the FoFA catch-22
Ever since the first draft of the Future of Financial Advice (FoFA) legislation came out, the advice sector has been trapped in a very ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

MySuper: our verdict is in
Has MySuper worked? Has it lowered fees, simplified superannuation products, lifted returns and made people better off? Yes, yes ... read more
News Search   
VideoBrought to you by
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
OCT
01
OCT
07
Major Market Players Symposium
14
Unlock the value of diversification with mFund
15
Investment Performance Measurement, Attribution & Risk Management
16
Unlock the value of diversification with mFund
20
Family Office Forum
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something 1sfcpauJ