FASEA Code of Ethics – Interpretation Key

FASEA’s recent release of an updated guidance document to its code of ethics has been met with a storm of criticism from advisers and industry stakeholders. Of particular concern is a change from the original explanatory statement for standard three, which warns that advisers will in breach if a “disinterested person, in possession of all the facts,” concludes that variable income has induced an adviser to not act in the best interests of a client. Clarity over the interpretation of the code remains opaque.