Do conflicts of interest exist in other professions?BY PHIL ANDERSON | WEDNESDAY, 16 JUN 2021 2:18PMDo you ever wonder if something similar to Standard 3 of the FASEA Code of Ethics on the ban of conflicts of interest and referral payments for financial advisers applies to other ... Upgrade your subscription to access this article
Join the growing community of financial advisers
with unlimited access to our latest news, research and analysis of the industry.
Become a premium subscriber today. |
Latest News
NCAs unlikely to solve retirement advice gap: HUB24, CFS
HUB24 and Colonial First State (CFS) say the New Class of Advisers (NCA) will unlikely solve the retirement advice gap Australians face, noting the focus needs to be on helping reduce friction for those with complex advice needs.
Advised cover faces claims data test
Group superannuation insurance appears to outperform individual advised cover on some claim's measures, raising questions about the value of advice when it comes to protecting clients against disability.
ASIC stalls Sequoia bid to ditch cross guarantee deed
ASIC is again putting up roadblocks to Sequoia Financial Group's attempt to revoke the deed of cross guarantee with InterPrac Financial Planning, asking more questions and requesting more information before the group rids itself of all liabilities arising from the Shield and First Guardian disaster.
Praemium's new leadership toughens earnings yardstick
Praemium's new leadership will be keeping a close eye on costs, with new chief executive Denis Orrock noting he will make sure the technology upgrade underway translates into stronger earnings and better returns for shareholders.
Further Reading
Cover Story

Advice with soul
SACHA BURCHGART
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
FOUNDER & MANAGING DIRECTOR
BURCHEART PTY LTD
Though she initially tried, Sacha Burchgart couldn't escape the call of a career in financial advice; it just took staring down her own mortality to see what's possible when you do things differently. Jamie Williamson writes.









Great article Phil! This highlights the double standards across the various professions, as ours always seems to get the short end of the straw! To paraphrase a famous quote from George Orwell's 'Animal Farm': all professions are equal, but some are more equal than others!!!
Great article Phil
"While the ethos of "the market" legitimises the pursuit of self-interest through the satisfaction of others' wants, the ethos of "the professions" aims to secure the public good through the subordination of self-interest in favour of serving the interests of others."
In the real world, the first part of this sentence applies to everyone in our market driven economy. Referral fees or inducements or whatever you want to call them are der rigueur in our economy across most occupations and professions-oiling the wheels .
Medical practices are a business, not a charity.
Some 20 years ago the then government tried to stop the monetary influence of pathology providers on GPs. It was claimed that the problem had been solved by close supervision by the professional bodies and Medicare, but it never was. Anyone who knows about the yearly Christmas parties put on by various procedural specialists, with open invitations to GPs and staff, knows that inducements are well and truly afoot in medical practice despite protests from both the medical profession and government.
This is the great issue with FASEA standard three. I have long suspected that ASIC were heavily influencing FASEA in the early stages of the development of standard three, because ASIC knew that under the Corporations Act, conflicts if disclosed could be managed.
ASIC is against any form of commission - it's in their DNA. So that recognizing that it might be politically difficult to convince the government to abolish life risk commissions and other commissions in total, their answer was to have a direct input into the drafting of standard three.Mission accomplished - all care, no responsibility. . Nothing to see here folks!
ASIC say it is possible for advisers to operate in the market on a competitive basis (hence their interests in fair and reasonable fees) but still require adherence to standard three. Very cute - ASIC built the bullet and FASEA fired the gun .
Phil, what you have set out in your article demonstrates the clear hypocrisy of the regulators & politicians in their approach to our sector. That this goes unchallenged by those who are head our various representative bodies shows the weak kneed incompetence of those individuals.