CPD: Ethics and inappropriate financial advice

Earlier this month ASIC revealed that six of Australia’s biggest banking and financial services institutions have paid or offered over $3 billion in compensation for financial advice-related misconduct. Much of this resulted from the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the ripples from which are still being felt by licensees, advisers and investors today.

The financial adviser Code of Ethics followed hot on the heels of the Royal Commission, to provide guidance to advisers and licensees and comfort to a nervous public. The intent of the Code of Ethics has been to increase the level of professionalism across the financial advice industry and ensure all advisers put the interests of their clients first.

This article examines the importance of the appropriateness of financial advice.

Click here to read the article and complete the quiz for 0.75 ethics CPD.