Corporate regulator ASIC has recently released Regulatory Guide 269 (RG 269), which sets out its proposed approach to approving and overseeing compliance schemes for financial advisers.
From Jan. 1, financial advisers would be required to comply with a code of ethics, which would be monitored and enforced by an ASIC-approved compliance scheme. The code is being developed by the Financial Adviser Standards and Ethics Authority (FASEA).
RG 269 outlined the process and criteria for determining whether to approve a compliance scheme, as well as:
- ASIC’s expectations for the governance and administration, monitoring and enforcement processes, and ongoing operation of compliance schemes
- How ASIC will exercise its powers to revoke the approval of a compliance scheme and to impose or vary conditions on the approval
- The notifications that monitoring bodies must make to ASIC
“Effective compliance schemes are a key component of the reforms that will require higher standards of ethical behaviour and professionalism among financial advisers,” said Peter Kell, ASIC deputy chair.
“Our guidance requires high standards for compliance schemes, reflecting the significant responsibility that monitoring bodies operating compliance schemes will have. This includes the responsibility to effectively monitor and sanction adviser members if required.”