There will be no more free overseas holidays, cars and other “soft-dollar” perks for planners.

That’s what the Investment and Financial Services Association (IFSA) and the Financial Planning Association (FPA) hope to achieve with a new industry code of practice. After two years of setbacks for planners, the draft Code of Practice on Alternative Remuneration in the Wealth Management Industry has been introduced.

Under the new plan, FPA members will not be allowed to accept any perks linked to product or volume sales.

The transition period for the new code will begin on August 1 and will run through until January 1.

FPA CEO Kerrie Kelly says some benefits will be banned, and other perks – including entertainment over $300 – will have to be disclosed on a public register to be developed by the association.

“Our members will no longer be able to accept free travel and accommodation at conferences based on the volume of sales of a manufacturer’s product, computer hardware or office accommodation, cash or gifts of any sort over the value of $300,” Ms Kelly said.

IFSA CEO Richard Gilbert describes the move as “the first leg of a three-legged stool”, with rebates, commissions, and conflicts of interest next on the list. He says the new code sets a higher benchmark than required under the Financial Services Reform Act.

“Effective disclosure of soft-dollar benefits to people and companies who provide financial advice can ensure that consumers will be in a better position to decide whether to rely on that advice,” Mr Gilbert said.

The FPA has also released a draft industry guideline on rebates and related payments. It proposes consistent definitions and disclosure of rebates at all levels of the financial services industry. Members have until August 9 to comment on the draft.

Code compliance will be monitored by the FPA, and any breaches will be published on the association’s website.