New tool launches to help FASEA code compliance

With less than 20 business days until the Financial Adviser Standards and Ethics Authority Code of Ethics comes into effect, some businesses are seeing opportunity.

One such organisation is MyNextAdvice, which has launched a solution to help licensees monitor adviser compliance.

"ASIC has mandated that AFS Licensees are responsible for monitoring adviser compliance with the code until the Government establishes a central code monitoring and disciplinary body in early 2021," MyNextAdvice chief executive and co-founder Ray McHale said.

"The code also places a legal obligation on individual 'relevant providers' (advisers) to be able to give an account of how they have interpreted and applied the code in their dealings with clients from January 1."

He explained the service attempts to hone in on the specific objective of the Code of Ethics - delivering better client outcomes.

To do that it aims to capture the voices of clients. McHale said the tool is based on intellectual property that he has developed over a number of years.

The service captures client feedback online and licensees can use the data to identify business growth opportunities as well as monitor adviser performance.

The tool creates industry benchmarks so licensees can compare their performance against peers.

"There remains considerable uncertainty about the code and what the industry needs to do to ensure compliance, so we help licensees and their advisers to confidently and easily transition to the future state (governed by the code)," McHale said.

He made it clear that MyNextAdvice is not advocating reduction of effort by licensees to monitor and manage compliance but making the point that collecting client data could adequately meet many elements of the FASEA code.

Read more: MyNextAdviceFASEARay McHaleAFS Licensees
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