Document ID: chunk:federal_register_of_legislation:F2019L00117:reg:5:p2
Version: federal_register_of_legislation:F2019L00117
Segment Type: reg
Provision Reference: reg 5 (pt 2/3)
Character Range: 5992–8891

client with regard to their individual needs, priorities, circumstances and preferences, expressed or implicitly identified as the subject matter of the financial advisory engagement. While it may be possible to supplement your professional competence by accessing the expertise of others, the duty of competence is ultimately personal and cannot be outsourced to others.

Honesty:
  Acting to demonstrate, realise and promote the value of honesty requires that you conduct yourself with complete integrity in all your professional dealings with your clients and with all others that you engage with in a professional setting. It requires transparency, frankness and fairness to each of your clients, even where this may cause you personal detriment.

Fairness:
  Acting to demonstrate, realise and promote the value of fairness requires that you bring professional objectivity to the task of engaging with clients professionally, and when recommending financial products and professional services. It requires you to properly investigate, evaluate and diagnose a client's need for professional services, and to self-reflect on the limits of your professional competency.

Diligence
  Acting to demonstrate, realise and promote the value of diligence requires that you perform all professional engagements with due care and skill. It requires you to manage your time and resources to deliver professional services in a timely, efficient and cost effective way to each client.

Values paramount
  These values are paramount. All the other provisions of this Code must be read and applied in a way that promotes the values.

Ethical behaviour

Standard 1:
  You must act in accordance with all applicable laws, including this Code, and not try to avoid or circumvent their intent.

Standard 2:
  You must act with integrity and in the best interests of each of your clients.

Standard 3:
  You must not advise, refer or act in any other manner where you have a conflict of interest or duty.

Client care

Standard 4:
  You may act for a client only with the client's free, prior and informed consent. If required in the case of an existing client, the consent should be obtained as soon as practicable after this Code commences.

Standard 5:
  All advice and financial product recommendations that you give to a client must be in the best interests of the client and appropriate to the client's individual circumstances.
  You must be satisfied that the client understands your advice, and the benefits, costs and risks of the financial products that you recommend, and you must have reasonable grounds to be satisfied.

Standard 6:
  You must take into account the broad effects arising from the client acting on your advice and actively consider the client's broader, long-term interests and likely circumstances.

Quality process

Standard 7:
  The client must give free, prior and informed consent