How will the FASEA Standards be monitored and enforced?
The Financial Adviser Standards and Ethics Authority (FASEA) Standards are monitored and enforced through a combination of self-reporting, compliance checks, and disciplinary action.
Financial advisers are required to report their compliance with the FASEA Standards to their licensee on an annual basis. Licensees are responsible for monitoring the compliance of their advisers and reporting any non-compliance to ASIC.
ASIC also conducts random compliance checks on licensees to ensure they are meeting their obligations under the FASEA Standards. These checks may include reviewing licensee policies and procedures, interviewing advisers, and reviewing adviser files.
If a licensee or adviser is found to be non-compliant with the FASEA Standards, ASIC has the power to take disciplinary action, which may include fines, suspension, or cancellation of their license. ASIC may also refer serious breaches to the courts for prosecution.
In addition to ASIC’s monitoring and enforcement, professional bodies such as the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have their own codes of ethics and conduct that their members must adhere to. These bodies may also take disciplinary action against members who breach their codes of ethics and conduct.