Transition RFAs to higher standard: PAA

In its submission on the Financial Advisers Act review options paper, the association said it supported one classification of adviser, with the provisions that currently apply to authorised financial advisers applying to everyone.

“There would be no distinction in the FAA between personalised and class advice, or between category one and two products,” it said in its submission.

But the Code Committee would have flexibility to specify code standards that applied in certain advice situations so conduct and complexity requirements could vary depending on the complexity of the advice.

The PAA recommends a two-step transition period to move advisers who are not currently AFAs to the new standard.