The Association of Financial Advisers (AFA) and the Financial Planning Association (FPA) have welcomed the Australian Securities and Investments Commission’s (ASIC) new guidelines on the approval of codes of conduct.

The guidance will help the industry find ways to avoid the hated opt-in requirement of the Future of Financial Advice reforms, AFA CEO Brad Fox says.

“This needs to be considered very carefully to ensure the end outcome is beneficial for all stakeholders and can be delivered cost-effectively,” he said.

“We are pleased ASIC has provided further clarity on how an authorised representative may meet their legal obligations through obviating the need for opt-in.”

Advisers and licensees can now focus instead on compliance with fee disclosure statements and conflicted remuneration, Mr Fox says.

The FPA welcomes the guidelines but would rather see a code of professional standards than a way to avoid the opt-in provisions, CEO Mark Rantall says.

“We will ultimately seek code approval by ASIC but understand this course may be too hard for other industry associations.

“It is our view that alternative arrangements to manage opt-in are best handled within a comprehensive professional code.”

The FPA would prefer a pre-agreed renewal point with clients to the “draconian” two-year termination that has been legislated, Mr Rantall says.