Platforms no barrier for independence
The change was explained in an 'issues' document released on Wednesday, where the Code Committee summarised the major submission points on the first draft Code and outlined its responses in an effort to help inform consultation feedback on the second draft.
Submissions in reference to independence said platforms that are not exclusively aligned to particular products should not be caught.
The Code Committee's response was that authorised financial advisers (AFA's) who use platforms that are based on ‘independent choice' may still be referred to as ‘independent', even if some limits may apply. However limits that are binding on the AFA that result in a wide range of products or providers not being available will result in the AFA being unable to be held out as independent.
Some submitters also argued that the mere receipt of commission does not impact on independence.
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