The Australian Securities and Investments Commission (ASIC) has outlined plans for approving and overseeing compliance schemes for financial advisers.

A consultation paper on the plans includes compliance scheme approval application processes, scheme governance and administration, and monitoring and enforcement.

“Monitoring and enforcing compliance with the code of ethics is a significant responsibility that will be resource-intensive for the bodies that take on this role,” Deputy Chairman Peter Kell said.

“The compliance scheme framework is key to the successful operation of the proposed code of ethics, which must have the greatest possible influence on the behaviour of financial advisers.”

Financial advisers must meet an ethics code and have their compliance monitored and enforced by ASIC-approved compliance schemes from January 2020.

The changes are part of government reforms to lift industry standards.

The closing date for submissions is June 28. For more information, click here.