The pillars of our profession. - The Financial Planning ...

1 Code of professional practice | july 2 013 The pillars of our Published November 2009. Reprinted September 2010 (incorporating new Charging Model Definitions enforceable ( july 2012) under FPA Remuneration Policy (Oct 2009)). Last amended july 2013. Copyright of Financial Planning Association of Australia LtdFPA Code of Professional Practice 1 Introduction 2 Professional Regulation 2 FPA Professional Framework 2 Conflicts of Duties 3 Financial Planning and other professional services covered by the Code 3 Application of the Code of Professional Practice to Australian Financial Services Licensees 3 Application of the Code of Professional Practice to FPA Professional

2 Practices 3 Reviews of the Code of Professional Practice 3 Commencement and Amendment 3 Code of Professional Practice 4 Definitions 4 FPA Code of Ethics 6 Introduction 6 Eight Principles of Code of Ethics 6 FPA Code of Ethics 6 FPA Practice Standards 8 Introduction 8 FPA s Seven Practice Standards 8 Purpose and Function of Practice Standards 9 Application of the Practice Standards 9 Format of the Practice Standards 9 Rules of Professional Conduct 10 Introduction 10 Purpose and Function of Rules of Professional Conduct 10 Application of Rules of Professional Conduct 10 Format of Rules of Professional Conduct 10 FPA Practice Standards with Rules of

3 Professional Conduct 11PS 1 Engagement 11PS 11PS 11PS 12 Rules relating to Practice Standard 1 13PS 2 Collecting the Client s Information 15PS 15PS 15PS 15 Rules relating to Practice Standard 2 15PS 3 Analyse and Assess the Client s Financial Status 16PS 16PS 16 Rules relating to Practice Standard 3 16PS 4 Identify Suitable Financial Planning Strategies and Develop the Financial Planning Recommendations 16PS 16PS 16PS 17PS 17 Rules relating to Practice Standard 4 17PS 5 Implement the Client s Financial Planning Recommendations 19PS 19 Rules relating to Practice Standard 5 19PS 6 Review the Client s Situation 20PS 20PS 20 Rules relating to Practice Standard 6 20PS 7 Professional Obligations 21PS 21PS 21PS 21PS 21PS

4 23PS 26 Rules relating to Practice Standard 7 27 Annexure A 31 Table of contents2 FPA Code of Professional PracticeProfessional RegulationAs a form of professional regulation, the Code of Professional Practice is intended to operate alongside government regulation and inform licensee compliance requirements as outlined in the diagram below. Regulatory obligationsProfessional regulation is designed to reflect the perspective of your peers and aligned professionals on the quality of professional practice in Financial the FPA s view, better integration of professional regulation into the system of regulatory obligations will achieve greater consumer, regulator and marketplace benefits.

5 The structure of the Code of Professional Practice is summarised in the following is a measure of clear expectations of professional conduct, individual commitment to those obligations and preparedness to be held accountable by peers and the Professional FrameworkThe Code of Professional Practice complements the FPA Professional Framework. The Framework consists of three components:Professional MembershipProfessional Membership ensures that only the right people can become Members of the Conduct Professional Conduct ensures that members adhere to the Code of Professional Practice.

6 The high standards set for the profession, and that they are supported in following professional Accountability Professional Accountability protects the reputation of all Members by putting in place an independent, peer-driven disciplinary components are set out in the diagram below. IntroductionThe Financial Planning Association s (FPA) Code of Professional Practice ( the Code ) is the key document detailing the obligations of FPA members in the Financial Planning profession. The FPA Code of Professional Practice includes three enforceable components: Code of Ethics; Practice Standards; and Rules of Professional Conduct.

7 Together with any Guidance issued by the FPA in relation to the whole or any part of the of Professional PracticeGOVERNMENTC orporations Law (Statute and Common Laws)BUSINESSL icensee compliance requirements RULES OF PROFESSIONAL CONDUCTCODE OF ETHICSPRACTICE STANDARDSGUIDANCEFPA CODE OF PROFESSIONAL PRACTICEproFEssional frameworkPROFESSIONAL MEMBERSHIPENTRY, EDUCATION & EXPERIENCE REQUIREMENTSPROFESSIONALCONDUCTCOMPLIANC E, CONDUCT, CPD & SUPERVISION REQUIREMENTSPROFESSIONALACCOUNTABILITYCO MPLAINTS & DISCIPLINE SYSTEMS++FPA Code of Professional Practice 3 Conflicts of DutiesWhere conflicts arise between duties enunciated in the FPA s Code of Professional Practice or between such duties and the member s legal obligations, the FPA encourages members to seek guidance from the FPA Professional Standards Department, from suitably experienced peers, or from other qualified professionals.

8 Talking through the potential conflict of professional duties helps FPA members to accurately identify their professional obligations, engage with these principles, and contribute to the development of an ethical Planning and other professional services covered by the CodeThe FPA s Code of Professional Practice establishes professional obligations for the conduct of members in the provision of professional services and therefore applies to all types of services provided by the member in his or her professional capacity.

9 The services covered are not necessarily limited to the Financial planner/client relationship but potentially extend to dealings with other members of the profession and with other professionals and third parties. In addition, the Code may apply to the marketing of Financial Planning and other professional services. The application of the Code is therefore not limited to the provision of Financial services or advice as defined by the Corporations Act 2001, as amended from time to of the Code of Professional Practice to Australian Financial Services LicenseesFPA members are bound by the Code as a condition of membership of the FPA.

10 A limited number of Australian Financial Services Licensees pledge their commitment as FPA Professional Partners and pledge to uphold the Code. Failure by an FPA Professional Partner to uphold the Code may cause the FPA to severe its relationship with the FPA Professional Partner. Annexure A sets out the FPA Professional Expectations for Australian Financial Services Licensees. Application of the Code of Professional Practice to FPA Professional PracticesFPA Professional Practices are licensed by the FPA to utilise the FPA Professional Practice brand and marks.